U.S. stock index futures slipped slightly Wednesday, consolidating from record highs, with focus on more upcoming cues on the Federal Reserve and interest rates.
At 05:50 ET (09:50 GMT), Dow Jones Futures fell 25 points, or 0.1%, S&P 500 Futures dropped 7 points, or 0.1%, while Nasdaq 100 Futures slipped 75 points, or 0.4%.
The S&P 500 and the Dow Jones Industrial Average hit record highs on Tuesday, continuing the optimism generated by last week's bumper interest rate cut by the Fed.
Powell address, PCE data in focus However, sentiment was hit following a report from the Conference Board showing that US consumer confidence unexpectedly dropped in September due to worries over the health of the labor market.
Several Fed officials are set to speak in the coming days -- most notably Chair Jerome Powell on Thursday -- and they are likely to offer up more cues on the bank’s plans to cut interest rates.
Federal Reserve Governor Adriana Kugler will be in the spotlight on Wednesday.
On Tuesday, Fed Governor Michelle Bowman defended her decision to vote against the super-sized 50-basis point interest rate cut and support a more traditional quarter-percentage point drawdown, flagging that major inflation readings remain "uncomfortably above" the Fed's stated target level.
The Fed cut rates by 50 basis points last week and announced the start of an easing cycle, which analysts expect could bring rates lower by a total of 125 bps this year.
PCE price index data - the Fed’s preferred inflation gauge - is due on Friday, and is likely to factor into the central bank’s plans for interest rates.
Aside from this, new home sales for August are due later Wednesday, and weekly jobless claims on Thursday.
Nvidia cools after strong session Artificial intelligence major Nvidia (NASDAQ:NVDA) stock slipped 0.6% lower premarket after rising more than 3% on Tuesday.
The stock was buoyed chiefly by reports that CEO Jensen Huang was done selling Nvidia shares after offloading more than $700 million worth of shares under a trading plan.
Huang’s share sales had rattled some confidence in the company, especially after its quarterly results missed some high expectations, and it flagged delays in its advanced AI chips.
Crude hands back gains Crude prices slipped lower Wednesday, as traders reassessed the likely impact of fresh monetary stimulus from top importer China.
By 09:50 ET, the Brent contract dropped 0.4% to $74.19 per barrel, while U.S. crude futures (WTI) traded 0.5% lower at $71.22 per barrel.
Both benchmarks increased by just under 2% on Tuesday after China unveiled its latest barrage of stimulus measures. However, traders have noted that more help may be needed to boost the economic outlook for the world's largest importer of crude, according to Reuters.
Declining U.S. crude oil stockpiles provided some support for the market, as data from the American Petroleum Institute showed on Tuesday that crude inventories fell by 4.34 million barrels last week. Official numbers from the Energy Information Administration are due later in the session.
