U.S. stock index futures experienced a decline during evening trading on Wednesday, reversing their positive momentum from the earlier session on Wall Street. The uncertainty surrounding the Federal Reserve's plans for interest rate cuts contributed to the market's fluctuation.
Fed Chair Jerome Powell, while indicating that the bank plans to cut interest rates in 2024, emphasized the need for increased confidence in decreasing inflation. Minneapolis Fed President Neel Kashkari furthered this sentiment by stating that he anticipates no more than two rate cuts this year.
Despite Wall Street's initial rise following Powell's comments, futures failed to sustain the positive trend, and gains were reduced after Kashkari's remarks. S&P 500 Futures declined by 0.2% to 5,103.00 points, Nasdaq 100 Futures dropped by 0.3% to 18,991.0 points, and Dow Jones Futures fell by 0.1% to 38,655.00 points by 19:54 ET (00:54 GMT).
Kashkari, expressing optimism about the U.S. economy, mentioned the possibility of one or two rate cuts in 2024 due to its resilience. His views align with those of other Fed members who have highlighted concerns about persistent inflation, which may hinder expectations of early rate cuts.
The anticipation of the nonfarm payrolls data, scheduled for Friday, is expected to provide additional insights into the U.S. economy.
Despite earlier setbacks in the week, Wall Street indexes approached record highs, driven mainly by the technology sector, especially amid positive sentiments regarding artificial intelligence.
In after-hours trading, Victoria's Secret & Co experienced a 20% decline due to weaker-than-expected guidance for 2024.
Conversely, cybersecurity firm OneSpan Inc surged nearly 30% on better-than-expected quarterly earnings. New York Community Bancorp Inc continued its recovery, rising 1.2% after raising over $1 billion in new capital.
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