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(Reuters) – U.S. stock index futures edged higher on Wednesday, with investors awaiting a set of employment figures and minutes from the Federal Reserve’s latest meeting, a day after worries of persistent price pressures sparked caution on Wall Street.
At 5:36 a.m. ET, Dow E-minis were up 123 points, or 0.29%, E-minis were up 18.5 points, or 0.31% and E-minis were up 70.25 points, or 0.33%.
Wall Street’s main indexes ended lower in the previous session, with the benchmark S&P 500 and the tech-heavy Nasdaq logging their biggest daily declines since the Fed’s December meeting, when the central bank issued a cautious stance on upcoming interest rate cuts.
Markets fell after data reflected a robust labor market and upbeat services activity, causing investors to push back expectations on the Fed’s first rate cut to June, after which it is expected to stay on hold for the rest of the year, according to the CME Group’s (NASDAQ:) FedWatch Tool.
Limiting gains on equities, the yield on the benchmark 10-year Treasury bond is pinned at an eight-month high and analysts say markets could be volatile this year against the backdrop of stretched equity valuations and uncertainty regarding President-elect Donald Trump’s policies.
Focus will now be on the ADP National Employment Report for December and weekly jobless claims data, both due before markets open, along with comments from Fed Governor Christopher Waller.
The data could offer hints on what to expect from Friday’s crucial non-farm payrolls numbers.
Minutes from the Fed’s December meeting is due at 2:00 p.m. 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, potentially justifying the significant revisions in the December (Personal Expenditure) inflation projections, and whether the December rate cut was a compromise between the hawks and doves ahead of Trump’s second presidency,” said Achilleas Georgolopoulos, market analyst at brokerage XM.
Politics is also top on the minds of investors as they anticipate policy changes after Trump’s inauguration later this month.
His proposals, including mass deportations and tariffs, could trigger inflation pressures and spark a global trade war, although most analysts say the surcharges could be used more as a negotiating tool.
Among top premarket movers, Nvidia (NASDAQ:) rose 1.8% after the chip giant notched its biggest one-day drop on Tuesday since early September 2024.
Quantum-computing stocks Rigetti Computing fell 16.8%, IonQ dropped 8.9% and Quantum (NASDAQ:) Computing lost 17.7% after Nvidia boss Jensen Huang said computers based on the emerging technology are as much as 30 years away.
Tapestry (NYSE:) rose 2.4% after Barclays (LON:) upgraded the luxury name to “overweight” from “equal weight”.
Quarterly corporate updates are also on the horizon with big banks such JPMorgan Chase & Co (NYSE:) and Wells Fargo (NYSE:) among those expected to kick off the earnings season next week.
Markets will be closed on Thursday for a national day of mourning to mark the death of former President Jimmy Carter.
