U.S. stock futures declined on Wednesday following Tuesday’s mixed trading. Futures of major benchmark indices were lower.
The S&P 500 and Nasdaq 100’s retreat came as peace talks between President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders failed to deliver a breakthrough.
After Home Depot Inc. HD, investors await Target Corp.‘s TGT earnings today and Walmart Inc.‘s WMT on Thursday.
Investors are also focused on the Federal Reserve Chair Jerome Powell‘s speech later this week at the Jackson Hole Economic Policy Symposium for clearer signals on interest rates.
The 10-year Treasury bond yielded 4.31% and the two-year bond was at 3.76%. The CME Group’s FedWatch tool‘s projections show markets pricing an 82.9% likelihood of the Federal Reserve cutting the current interest rates for the Sept. 17 decision.
| Futures | Change (+/-) |
| Dow Jones | -0.23% |
| S&P 500 | -0.20% |
| Nasdaq 100 | -0.25% |
| Russell 2000 | -0.18% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.13% at $638.95, while the QQQ declined 0.16% to $568.36, according to Benzinga Pro data.
Trending Investment Opportunities
Cues From Last Session
Real estate, utilities, and consumer staples stocks recorded the biggest gains on Tuesday, with most S&P 500 sectors closing on a positive note. Information technology and communication services stocks, however, bucked the overall market trend and closed lower, contributing to a session where
U.S. stocks settled mostly down. The Nasdaq Composite fell more than 300 points as a lack of fresh bullish catalysts prompted investors to take profits following the recent months-long rally.
Intel Corp. INTC rallied 7%, extending its monthly gains to 27%, after Japan’s SoftBank Group announced a $2 billion investment in the chipmaker. Palo Alto Networks Inc. PANW jumped over 3% after posting a double beat on its latest quarterly results.
On the economic data front, U.S. housing starts climbed by 5.2% from the previous month to an annualized rate of 1.428 million in July. Building permits saw a decline of 2.8% to an annualized rate of 1.354 million in July.
The Dow Jones index ended 10 points or 0.023% higher at 44,922.27, whereas the S&P 500 index fell 0.59% to 6,411.37. Nasdaq Composite declined 1.46% to 21,314.95, and the small-cap gauge, Russell 2000, tumbled 0.78% to end at 2,276.61.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -1.46% | 21,314.95 |
| S&P 500 | -0.59% | 6,411.37 |
| Dow Jones | -0.023% | 44,922.27 |
| Russell 2000 | -0.78% | 2,276.61 |
Insights From Analysts
Economist Jeremy Siegel highlights Fed Chair Powell’s upcoming speech as the key market mover, outweighing a recent slew of mixed economic data.
WisdomTree Senior Economist Jeremy Siegel states that the market’s direction for the coming months could be shaped by Federal Reserve Chair Powell’s address this Friday at the Jackson Hole Economic Symposium.
Siegel notes that while recent economic data has been varied, the underlying trends suggest that price pressures are not accelerating in the areas most watched by the Fed.
Despite a “sharp jump” in the Producer Price Index (PPI) driven by portfolio management fees, he points out that some economists have actually lowered their estimates for PCE inflation. This suggests that core inflation, when adjusted for statistical anomalies, is aligning with the Federal Reserve’s path toward potential policy easing.
On other economic fronts, Siegel observes:
- Retail Sales: The data came in on target and, combined with prior revisions, could slightly increase the second-quarter GDP growth from its 3.1% pace. Siegel believes the second quarter was stronger than many had feared.
- Labor Market: Jobless claims are stable at around 220,000, indicating labor market resilience even as hiring slows.
- Tariffs: Siegel reiterates his view that inflation caused by tariffs is a “one-time tax-driven price adjustment” and not a sign of an overheating economy that the Fed should react to with restrictive policy.
- Money Supply: Growth in the money supply is soft but not recessionary, which Siegel argues strengthens the case for policy easing.
According to Siegel, Chair Powell’s speech on Friday will be the “fulcrum on which the next leg of this market pivots”. He outlines two primary scenarios:
- A Dovish Tone: If Powell acknowledges the cooling labor market and the positive trend in core inflation, it could signal a 25-basis-point rate cut at the Fed’s September 17 meeting. Siegel expects a “further bid under” small-cap names in this scenario.
- A Hawkish Signal: If Powell emphasizes a need for more data and downplays the recent economic softness, markets will interpret it as hawkish. “I expect risk markets to react negatively,” Siegel warns.
Market positioning has become increasingly reactive to expectations for the Fed’s next move. Siegel points out that small-cap and value stocks, which are more dependent on short-term financing, have shown a tight correlation with interest rate expectations.
“As anticipation for a rate cut builds, small caps rally,” Siegel states. In contrast, large tech firms with significant cash reserves or long-term debt are less sensitive to near-term rate changes.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will be keeping an eye on Wednesday;
- The minutes of the Federal Reserve’s July FOMC meeting will be released at 2:00 p.m. ET.
Stocks In Focus
- Lowe’s Companies Inc. LOW was down 0.32% in premarket on Wednesday as it is expected to report earnings before the opening bell. Analysts estimate earnings of $2.04 per share on revenue of $24.9 billion.
- Target Corp. TGT was 0.65% lower as analysts expect it to report earnings of $2.05 per share on revenue of $24.93 billion before the opening bell.
- TJX Companies Inc. TJX dipped 0.54% as it is expected to report earnings before the opening bell. Analysts estimate earnings of $1.01 per share on revenue of $14.13 billion.
- La-Z-Boy Inc. LZB dropped 24.57% after reporting a weaker-than-expected financial results for the first quarter of fiscal 2026 after the market closed. The company said its guidance reflects a “continued challenging consumer and macroeconomic environment.”
- Toll Brothers Inc. TOL declined 1.65% as it anticipates an adjusted home sales gross margin of 27% in the fourth quarter versus 27.5% in the third quarter.
- Oracle Corp. ORCL was 0.61% below flatline following a 5.8% drop from Tuesday as the enterprise software giant is undergoing significant corporate restructuring, including the departure of chief security officer Mary Ann Davidson, a decades-long key figure in Oracle’s security operations.
- Palantir Technologies Inc. PLTR was down 1.07% after plunging 9.35% on Tuesday as Citron Research released a report valuing it at $40 per share and a partnership with Fujitsu Ltd. failed to ignite the stock.
Commodities, Gold, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 1.44% to hover around $62.66per barrel.
Gold Spot US Dollar rose 0.27% to hover around $3,324.53 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was 0.08% higher at the 98.3470 level.
Asian markets ended higher on Wednesday, except South Korea’s Kospi and Japan’s Nikkei 225 indices. India’s S&P BSE Sensex, Hong Kong’s Hang Seng, China’s CSI 300, and Australia’s ASX 200 indices rose. European markets were lower in early trade.
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