U.S. stock futures paused Wednesday after Wall Street markets hit recent all-time highs as investors looked to upcoming data for clues about the health of the economy and the chances of another massive rate cut.
Futures for the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) were little changed after both indexes hit record closing highs. Contracts for the tech-heavy Nasdaq 100 (NQ=F) fell about 0.3%.
The modest rally in stock markets is running out of steam as recession fears mount, fueled by a surprisingly weak consumer confidence reading. The debate is over whether the Federal Reserve cut interest rates by a 0.5% more than usual in response to a slowing economy, and what new unease means for another drastic cut that is expected.
Learn more: What the Fed’s Rate Cut Means for Bank Accounts, CDs, Loans, and Credit Cards
Mortgage applications hit their highest level since 2022, according to MBA data released before the closing. The growth is driven by homeowners looking to refinance their loans as rates drop.
Data watchers will be able to look to the latest home sales data for more information later Wednesday. But the focus is clearly on second-quarter GDP, released Thursday, and the crucial reading on the PCE index, the Fed’s preferred gauge of inflation, released Friday.
The parade of Fed speakers continues with Governor Adriana Kugler, whose comments will also be scrutinized for insight into the size and pace of rate cuts to come when she appears later Wednesday.
At the same time, the boost given to markets by China’s massive stimulus measures has faded due to growing skepticism about the ability of these measures to revive the Chinese economy.
