US stock futures edge lower with Powell in focus

Investing.com-- U.S. stock index futures fell slightly in evening deals on Monday, with focus turning squarely to an upcoming address by Federal Reserve Chair Jerome Powell for more cues on interest rates.

Anticipation of key payrolls data and the minutes of the Fed’s June meeting also kept sentiment frail, while trading volumes remained slim before the July 4 holiday.

Still, Wall Street marked a positive close on Monday, buoyed chiefly by technology stocks.

S&P 500 Futures fell 0.1% to 5,527.75 points, while Nasdaq 100 Futures fell 0.2% to 20,016.00 points by 19:49 ET (23:49 GMT). Dow Jones Futures fell 0.1% to 39,471.0 points.

Powell, payrolls and Fed minutes in focus

Powell is set to speak at a European Central Bank conference on Tuesday, where the Fed Chair could potentially address recent data showing some cooling in the U.S. economy and inflation.

The minutes of the Fed’s meeting are due on Wednesday, and come after the central bank forecast during the meeting that it will cut interest rates only once in 2024. Several Fed officials have also warned that sticky inflation will delay any plans to loosen policy.

Nonfarm payrolls data is due on Friday and is expected to provide more cues on the labor market. The sector has been running hot despite sticky inflation and high interest rates, and is also a key consideration for the Fed in cutting interest rates.

But despite hawkish signals from the Fed, traders were seen increasing their bets that the central bank will cut rates by 25 basis points in September. The CME Fedwatch tool showed traders pricing in a 59% chance of such a possibility.

Wall St edges higher, tech reigns

Increased expectations of rate cuts kept investors positive on stock markets, helping Wall Street rise past signs of a cooling U.S. economy.

Technology stocks remained the biggest boost to indexes, amid persistent bets that artificial intelligence will help drive up demand for the sector.

The S&P 500 rose 0.3% to 5,475.09 points, while the NASDAQ Composite rose 0.8% to 17,876.26 points. The Dow Jones Industrial Average rose 0.1% to 39,169.52 points.

Tesla Inc (NASDAQ:TSLA) jumped 6% before its second quarter deliveries, while NVIDIA Corporation (NASDAQ:NVDA) ended up 1% after Morgan Stanley (NYSE:MS) upgraded its price target on the AI darling.

Among aftermarket movers, Paramount Global (NASDAQ:PARAA) rose 3% after The New York Times reported that billionaire Barry Diller was considering a bid for the firm.

This article first appeared in Investing.com