S&P 500, Nasdaq futures slip on inflation concerns; Fed speakers in
focus
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[September 07, 2023] (Reuters)
- The S&P 500 and Nasdaq futures fell on Thursday over persistent
inflationary pressures, while investors awaited comments from key
Federal Reserve officials later in the day to gauge the U.S. interest
rate path.
Wall Street's three major stock indexes closed lower on Wednesday with
the Nasdaq's 1% loss leading declines after stronger-than-expected
services sector data fueled concerns that sticky inflation could lead to
interest rates staying higher for longer.
Apple dropped 2.8% in premarket trading on a report that China was
seeking to broaden iPhone ban to state firms and agencies, a day after
losses in its shares weighed down all three major indexes.
Further denting sentiment, data showed China's exports and imports fell
in August, with sagging overseas demand and weak consumer spending
hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings, JD.com,
Baidu and Alibaba fell between 1.8% and 2.5%.
"The twin worries of China's slowdown and the prospect of higher
interest rates in the U.S. are proving hard to shift, spreading fresh
unease among investors," Susannah Streeter, head of money and markets at
Hargreaves Lansdown said in a note.
"Lackluster trading is set to be the order of the day given there is so
little to pin more optimistic hopes on right now."
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., July 19, 2023. REUTERS/Brendan McDermid/File
Photo
Investors await comments from at least six Fed speakers, including
policy voting members Philadelphia Fed President Patrick Harker,
Vice Chair and New York Fed President John Williams, due to speak
later in the day.
Traders' bets on the Fed leaving interest rates unchanged in
September stood at 93%, while their odds for a pause in the November
meeting were at 53.5%, according to the CME FedWatch Tool.
At 5:30 a.m. ET, Dow e-minis were up 42 points, or 0.12%, S&P 500
e-minis were down 9 points, or 0.2%, and Nasdaq 100 e-minis were
down 87 points, or 0.56%.
Investors also await initial jobless claims numbers for the week
ended Sept. 2, due at 8:30 a.m. ET, as they parse through economic
data for any indications of slowing inflation.
Megacap stocks Tesla and Nvidia lost 1.5% and 2.0%, respectively, in
premarket trading.
Automation software firm UiPath added 4.6% on upbeat annual revenue
forecast after it topped estimates for second-quarter results.
(Reporting by Shristi Achar A in Bengaluru; Editing by Vinay
Dwivedi)
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