US Stocks – Futures catch their breath ahead of Powell’s comments

US Stocks – Futures catch their breath ahead of Powell’s comments

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Futures fell: Dow Jones 0.02%, S&P 0.05%, Nasdaq 0.07%.

November 8 (Reuters)US stock index futures fell on Wednesday as investors remained on the sidelines ahead of a comment by Federal Reserve Chairman Jerome Powell that could provide more clarity on the direction of interest rates.

Wall Street started November well, with the S&P 500 index up .SPX and Nasdaq .IXIC The bank posted its longest streak of gains in two years on Tuesday as Treasury yields fell sharply amid expectations that the Federal Reserve has reached the end of its tightening campaign.

Markets are now pricing in interest rate cuts as soon as May, according to CME Group’s FedWatch tool, with the odds of a cut of at least 25 basis points rising to nearly 52% from about 41% a week ago.

However, cautious comments made by several central bank officials over the past few days have kept investors on edge, including Fed Governor Michel Bowman Which indicates the possibility of raising interest rates further given the strength of the US economy.

All eyes will be on Powell’s opening remarks to the Fed’s Centennial Conference at 9:15 a.m. EDT (1415 GMT) for further clues on how long U.S. monetary policy could remain tight.

The Fed chairman is also scheduled to speak at another conference on Thursday.

“Equities may pause for breath as investors balance hope of lower interest rates with growing financial pressures in the economy,” Derryn Nathan, head of equity research at Hargreaves Lansdown, said in a note.

“This would not be the first time…the market has been wrong about the timing of the Fed’s pivot.”

The benchmark 10-year US Treasury bond yield US10YT = T The index settled at 4.5728%, well below the 5% level that was breached in October.

Analysts have mixed views on the year-end outlook for stocks, with some cautiously optimistic about the upside potential while others highlight the possibility of economic growth concerns and tepid earnings forecasts keeping sentiment low.

Discover Warner Bros WBD.O And Biogen BIIB.O It is among the major companies on Wall Street that are scheduled to publish their quarterly results before the opening bell.

At 5:19 a.m. ET, the Dow Jones e-mini 1YMcv1 The S&P 500 index fell 7 points, or 0.02%. EScv1 The small-cap Nasdaq 100 index fell 2.25 points, or 0.05%. NQcv1 It fell 11.25 points, or 0.07%.

One of the main movers is the electric car maker Rivian CarsRaven.and The stock rose pre-market 6.8% after raising its full-year production forecast, while its smaller rival Lucid CollectionLCID.O It fell 4.0% after cutting production expectations.

Interactive Take-Two TTWO.O Shares of Rockstar Games rose 8.6% after a report that its division Rockstar Games plans to announce the next “Grand Theft Auto” game as early as this week.

shares Air spirit systemsSPR.N It fell 14.3% after the beleaguered aviation supplier announced new capital raising measures.

(Reporting by Amruta Khandekar, Editing by Maju Samuel)

((Amruta.Khandekar@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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