U.S. stock index futures saw modest gains on Wednesday as investors awaited key economic updates, including revised U.S. payroll data and minutes from the Federal Reserve’s July policy meeting.
The payroll report, expected to show a downward revision of job creation numbers, is anticipated to reinforce the view of a cooling labor market.
Meanwhile, the Fed minutes and an upcoming speech by Chair Jerome Powell at the Jackson Hole symposium are in focus, with markets speculating on the likelihood of a rate cut in September.
Early premarket movers included Target, which surged 13% after raising its annual profit forecast, driven by strong sales of low-priced essentials.
In contrast, JD.com saw its U.S.-listed shares drop 7% following Walmart’s sale of its entire stake in the company, while Macy’s shares fell 8% after lowering its annual sales forecast due to weak consumer spending.
Despite light trading volumes typical of the summer period, the market is watching closely for signals on the Fed’s monetary policy direction.
Financial markets currently predict a 69.5% chance of a 25 basis-point interest rate cut by the Fed in September, although recent comments from Fed officials suggest caution regarding any policy shifts due to persistent inflation concerns.
Wall Street’s major indexes, which had recently bounced back from a steep sell-off, closed slightly lower on Tuesday, ending a multi-session rally.