•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
US equity futures were mixed to firmer on Wednesday as investors looked past Tuesday’s tech-led pullback and prepared for Kevin Warsh’s first Federal Reserve decision as chair.
Nasdaq 100 contracts rose as semiconductor shares steadied in pre-market trading, while S&P 500 futures edged higher and Dow futures were little changed.
The session includes several tests for risk appetite: the Fed’s rate projections, May retail sales, oil prices near three-month lows, and whether the rally can broaden beyond mega-cap technology.
S&P 500 futures edged up 0.1%, while Nasdaq futures rose 0.6% as tech stocks outperformed. Dow futures were little changed, slipping marginally.
The setup follows a mixed session on Tuesday. The Nasdaq fell 1.15% and the S&P 500 lost 0.57%, while the Dow gained 0.64% to a second straight record close.
The Fed is expected to leave its benchmark rate unchanged in the 3.50%-3.75% range. That makes the press conference more important than the decision itself.
Investors want to know whether Warsh will lean into inflation risks or keep the committee’s options open.
CME FedWatch indicates traders are still assigning a meaningful chance to a December rate increase, keeping rate-sensitive growth stocks exposed to any hawkish shift.
May retail sales, due at 8:30 am ET, will provide a fresh read on the US consumer.
Markets are positioned for resilience, but stronger spending could complicate the case for lower yields if inflation remains sticky. A softer number would support the view that higher borrowing costs and earlier energy shocks are starting to restrain demand.
A stronger print could instead reinforce the Fed’s case for patience.
Crude prices remained near three-month lows as traders assessed an interim US-Iran peace framework that could allow more Iranian oil into global markets and ease shipping risks through the Strait of Hormuz.
Brent was hovering near $79 a barrel on Wednesday after sharp declines driven by hopes of supply returning.
Lower oil prices have helped cool inflation fears and supported the recovery in bonds, giving equities some breathing space after weeks of energy-driven pressure.
Chip stocks recovered in pre-market trading after Tuesday’s selloff in semiconductors. Broadcom, Micron, AMD, and Intel rose between 1.8% and 3.8%, helping Nasdaq futures outperform.
SpaceX gained 3.2% after overtaking Amazon’s market value on Tuesday to become the fifth most valuable company.
Bitcoin (BTC) investors who use steady dollar-cost averaging (DCA) may be underperforming versus strategies that adjust exposure to the market’s cycle, according to new research arguing that Bitcoin’s behavior differs from traditional long-duration assets.
In a report cited by Markus Thielen of 10x Research, Bitcoin’s market…
