U.S. stock futures edged lower on early Wednesday, after Wall Street’s weak performance paused the recent market rally. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.59%, 0.43%, and 0.5%, respectively, at 3:41 a.m. EST, May 21.
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Tuesday’s trading day concluded with losses across the major averages. The S&P 500’s six-day winning streak came to an end, and the Nasdaq Composite (NDAQ) saw its first negative session in three. The Dow Jones also retreated, breaking its three-day positive trend.
The downside came as investors closely watched the ongoing talks about the federal budget and rising debt. Globally, tensions grew as China blamed the U.S. of undermining recent trade negotiations in Geneva, following a warning from the U.S. Commerce Department about Huawei’s chips.
At the same time, Federal Reserve officials signaled no immediate rate hikes. St. Louis Fed President Alberto Musalem stated that the current policy is appropriate and that the tariff-related inflation worries are likely short-term.
Looking ahead, the market is focused on a busy day for corporate earnings reports. Companies such as Lowe’s (LOW), Target (TGT), Canada Goose (GOOS), TJX Companies (TJX), Medtronic (MDT), Weibo (WB), Zoom Communications (ZM), and Snowflake (SNOW) are releasing results today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.515%. Simultaneously, WTI crude oil futures are trending higher, hovering near $62.76 per barrel as of the last check.
At the same time, the Gold Spot U.S. Dollar Price rose to nearly $3,310 per ounce on Wednesday, as investors looked for safe-haven assets following reports that Israel may strike Iran’s nuclear sites.
Elsewhere, European indices are expected to open flat today. Investors remain cautious due to geopolitical tensions and uncertainty over the U.S. economy and fiscal policies.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific indices were mixed today, with Japanese stocks slipping due to weak trade data and Chinese stocks extended gains as the central bank’s rate cut boosted sentiment.
At the same time, the Hong Kong index was up 0.49%. Also, China’s Shanghai Composite and Shenzhen Component indices closed higher by 0.21% and 0.44%, respectively. However, Japan’s Nikkei and Topix indices declined 0.61% and 0.22%, respectively.
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