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Traders now see a 72% chance of a 25-basis-point rate hike in
July, up from around 60% odds a day earlier, according to the
CME Fedwatch tool.
"Powell expressed that the committee seemed surprised about the
resilience of current inflation even if Tuesday's CPI print
showed a continued slowing in the headline inflation rate," said
Charles Hepworth, investment director at GAM Investments.
"Admitting to being surprised that the Fed’s policy to date
hasn’t cooled a hot jobs market is basically signaling higher
rates are indeed even more necessary and can be withstood by the
economy as it glides (to) a soft landing."
Investors will watch out for a slew of economic data due later
in the day, including the initial jobless claims for the week
ended June 10 and retail sales for May.
U.S. stock indexes ended mixed on Wednesday as Fed comments
dented investor optimism sparked by recent data showing signs of
cooling inflation.
At 5:37 a.m. ET, Dow e-minis were down 21 points, or 0.06%, S&P
500 e-minis were down 10.5 points, or 0.24%, and Nasdaq 100
e-minis were down 82 points, or 0.54%.
Market heavyweights Tesla, Apple, Nvidia and Amazon.com fell
between 0.3% and 3.1% in premarket trading.
Shares of Tesla also snapped a record 13-day streak of gains in
the previous session, which saw the electric-vehicle maker add
more than $200 billion to its market-cap.
Domino's Pizza added 2.5% after Stifel upgraded the pizza maker
to "buy" from "hold".
U.S.-listed shares of Chinese companies gained after the
People's Bank of China(PBOC) cut the borrowing cost for its
medium-term policy loans for the first time in 10 months.
JD.com, PDD Holdings, Alibaba Group and iQIYI Inc rose between
1.5% and 3%.
(Reporting by Shristi Achar A in Bengaluru; Editing by Vinay
Dwivedi)
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