U.S. stock futures were halted Wednesday after Wall Street markets hit record highs. Investors looked to upcoming data for clues about the health of the economy and the likelihood of another big rate cut.
Futures on the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) were little changed after record closes for both. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell about 0.3%.
The modest rally in stocks is stalling as recession worries mount, fueled by a surprisingly weak reading on consumer confidence. The debate centers on whether the Federal Reserve cut rates by a larger-than-usual 0.5% in response to an economic slowdown, and what further malaise means for another hoped-for deep cut.
Read more: What the Fed’s Rate Cut Means for Bank Accounts, CDs, Loans and Credit Cards
Mortgage applications rose to their highest level since 2022, according to MBA data released before the bell. The growth was driven by homeowners looking to refinance their loans as interest rates fall.
Data watchers will get the latest reading on home sales to look for more insight later Wednesday. But the spotlight is firmly on Thursday’s second-quarter GDP print and Friday’s crucial reading on the PCE index — the Fed’s preferred gauge of inflation.
The parade of Fed speakers continues with Governor Adriana Kugler, whose remarks later Wednesday will also be scrutinized to gain insight into the size and pace of the rate cuts to come.
Meanwhile, the boost to markets from China’s massive stimulus measures has faded as skepticism mounts over whether the measures will actually revive the economy.
