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Traders see a slightly greater probability of the Fed raising
rates by 50 basis points in September, rather than a third 75
basis-point hike, after the minutes on Wednesday. [FEDWATCH]
"The July FOMC minutes indicated that participants thought that
'at some point' it would likely become appropriate to slow the
pace of hiking while assessing the impact from tighter financial
conditions," Goldman Sachs said in a note.
Treasury yields pulled back slightly, giving a boost to some of
the high-growth and technology stocks in premarket trading.
The Fed has lifted its benchmark interest rate by 225 bps so far
this year to control four-decades high inflation, resulting in a
sharp selloff in equity markets as investors adjust to
tightening financial conditions.
The Labor Department data, due at 8:30 a.m. ET, is expected to
show initial claims for state unemployment benefits rose by
3,000 to a seasonally adjusted 265,000 for the week ended Aug.
13, up from 262,000 in the previous week.
Data showing softer-than-expected inflation in July has sparked
a risk-on rally in Wall Street in the last few weeks, with
investors awaiting further clues about interest rates from the
Fed's annual Jackson Hole symposium next week.
The tech-heavy Nasdaq has bounced nearly 22% from its mid-June
lows, while the benchmark S&P 500 has risen 17%, supported by
upbeat results from corporate America.
At 07:01 a.m. ET, Dow e-minis were up 28 points, or 0.08%, S&P
500 e-minis were up 3.25 points, or 0.08%, and Nasdaq 100
e-minis were up 4 points, or 0.03%.
Retailer Kohl's Corp dropped 7.5% on cutting its full-year sales
and profit forecasts squeezed by steeper discounts and higher
costs, while Estee Lauder Cos Inc slipped 1.6% as it forecast
full-year sales below estimates.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shounak Dasgupta)
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