Wall Street Futures Edge Higher as Markets Await Jobless Claims and PCE Data
U.S. stock futures moved slightly higher on Wednesday evening after Wall Street closed lower in regular trading. Investors are now focused on upcoming weekly jobless claims and the Federal Reserve’s preferred PCE inflation measure later this week.
Concerns over a potential partial government shutdown capped gains, with lawmakers still deadlocked on a funding extension.
As of 20:18 ET (00:18 GMT), S&P 500 Futures rose 0.1% to 6,701.0 points. Nasdaq 100 Futures gained 0.1% to 24,768.75, while Dow Jones Futures added 0.1% to 46,504.0.
Markets Await U.S. Jobs and Inflation Data
Wall Street ended lower on Wednesday, dragged down by weakness in technology stocks. The S&P 500 and Nasdaq Composite each fell 0.3%, while the Dow Jones Industrial Average slipped 0.4%.
Fed Chair Jerome Powell warned this week that there is “no risk-free path” in setting monetary policy. He noted that asset prices look “fairly highly valued” and cautioned against assuming inflation will keep falling smoothly. His remarks reinforced expectations that the Fed will take a cautious stance on interest rate cuts.
Investors are now waiting for key data:
- Weekly jobless claims due Thursday, expected at 233,000 after 231,000 the prior week.
- A final reading of Q2 GDP growth on Thursday.
- The August PCE price index on Friday, forecast to show core inflation at 2.9% year-on-year, still above the Fed’s 2% target.
Many traders are staying cautious, avoiding large positions until these reports provide clearer signals on the Fed’s policy outlook.
Government Shutdown Risk Intensifies
The U.S. faces the risk of a partial shutdown on Sept. 30. Last week, the Senate rejected a Republican-backed funding bill due to opposition over healthcare and Medicaid provisions.
According to Politico, the White House budget office has told federal agencies to prepare layoff plans that could trigger mass firings if a shutdown occurs.
AI-Linked Stocks Pressure Markets; Intel Surges
AI-related stocks weighed on Wall Street for a second straight day. Nvidia (NASDAQ:NVDA) and Oracle (NYSE:ORCL) both extended losses.
Micron Technology (NASDAQ:MU) also fell despite reporting another quarter of growth driven by AI demand.
On the upside, Intel (NASDAQ:INTC) shares surged more than 6% after Bloomberg reported that the company had approached Apple (NASDAQ:AAPL) about a potential investment.
