Futures dip after rally powered by Powell's dovish comments

[November 29, 2018]   By Amy Caren Daniel

(Reuters) - U.S. stock index futures fell on Thursday, following a sharp rally in the prior session after Federal Reserve Chair Jerome Powell eased worries about monetary tightening, as focus shifts to a high stakes U.S.-China trade talk at the G20 Summit.

In a speech on Wednesday, Powell said the policy rate is now "just below" estimates of a level that neither brakes nor boosts a healthy economy, helping the S&P 500 and the Dow post their biggest percentage gains in eight months.

U.S. 10-year Treasury yields <US10YT=RR> fell to 3 percent, its lowest level since mid-September.

Shares of the interest-rate sensitive financial stocks dipped in premarket trading. U.S. lenders JPMorgan Chase & Co <JPM.N>, Goldman Sachs Group Inc <GS.N> and Wells Fargo & Co <WFC.N> fell about 0.2 percent.

"US futures are slightly in the red on the back of some early profit-taking," said Craig Erlam, senior market analyst at Oanda in London.

U.S. President Donald Trump and Chinese President Xi Jinping are due to hold trade talks on the sidelines of the G20 summit in Buenos Aires on Saturday.

At 6:48 a.m. ET, Dow e-minis <1YMc1> were down 78 points, or 0.31 percent. S&P 500 e-minis <ESc1> were down 10.75 points, or 0.39 percent and Nasdaq 100 e-minis <NQc1> were down 47.25 points, or 0.68 percent.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 28, 2018. REUTERS/Brendan McDermid

Nielsen Holdings Plc <NLSN.N> gained 2.6 percent after report that the TV ratings company received buyout interest from a private equity group Madison Dearborn.

McDonald's Corp <MCD.N> rose 1.1 percent after brokerage Morgan Stanley upgraded stock to "overweight", saying the fast-food chain's store modernization efforts will pay off in 2019.

Data from the Commerce Department at 8:30 a.m. ET will likely show personal consumption expenditure, the Fed's preferred measure of inflation, rose 0.4 percent in October, after a similar rise in the previous month.

The Federal Open Market Committee is scheduled to release the minutes from its November 7-8 policy meeting at 2:00 p.m. ET.

(The story corrects typo in headline)

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Arun Koyyur)

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