(Reuters) – U.S. stock index futures moved higher on Wednesday as investors awaited a set of employment data and minutes from the Federal Reserve’s latest meeting, a day after concerns about continued price pressures prompted caution on Wall Street.
At 5:36 a.m. ET, the Dow E-minis were up 123 points, or 0.29%, the S&P 500 E-minis were up 18.5 points, or 0.31%, and the Nasdaq 100 E-minis were up 70.25 points, or 0.33%.
Wall Street’s major indexes finished lower in the previous session, with the benchmark S&P 500 and the tech-heavy Nasdaq posting their biggest daily declines since the December Fed meeting as the central bank took a cautious stance on coming rate cuts.
Markets fell after data reflected a robust labor market and upbeat services activity, prompting investors to reset their expectations for the Fed’s first rate cut to June, after which it is expected to remain unchanged for the rest of the year, the CME report said Group. FedWatch tool.
To limit gains in equities, the yield on the 10-year government bond is at an eight-month high. Analysts say markets could be volatile this year amid high stock valuations and uncertainty over President-elect Donald Trump’s policies.
The focus will now be on the ADP National Employment Report for December and the weekly unemployment benefits data, both of which will be released before markets open, along with commentary from Fed Governor Christopher Waller.
The data could offer hints about what to expect from Friday’s crucial nonfarm payrolls numbers.
The minutes of the Fed’s December meeting will be released at 2:00 PM ET and could shed further light on the central bank’s monetary policy outlook this year.
“It would be interesting to see how concerned Fed members really are about the inflation outlook, which could potentially justify the significant revisions to the December (personal consumption expenditure) inflation projections, and whether the December rate cut was a compromise between the hawks and the doves in the run-up to the crisis. Trump’s second presidency,” said Achilleas Georgolopoulos, market analyst at brokerage XM.
Politics is also a key focus for investors as they anticipate policy changes following Trump’s inauguration later this month.
His proposals, which include mass deportations and tariffs, could create inflationary pressures and spark a global trade war, although most analysts say the surcharges could be used more as a negotiating tool.
Among the top premarket movers, Nvidia rose 1.8% after the chip giant posted its biggest single-day decline since early September 2024 on Tuesday.
Quantum computing stocks Rigetti Computing fell 16.8%, IonQ fell 8.9% and Quantum Computing lost 17.7% after Nvidia boss Jensen Huang said computers based on the emerging technology are as much as 30 years away.
Tapestry rose 2.4% after Barclays upgraded the luxury name from ‘equalweight’ to ‘overweight’.
Quarterly business updates are also on the horizon, with major banks like JPMorgan Chase & Co and Wells Fargo expected to kick off earnings season next week.
Markets are closed Thursday for a national day of mourning commemorating the death of former President Jimmy Carter.
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)
