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The Dow was heading for another record high, but stock futures elsewhere were falling as investors waited for a delayed jobs report that could help determine how many times the Federal Reserve cuts interest rates in 2026.
Futures tracking the Dow Jones Industrial Average rose 31 points, or 0.1%. S&P 500 futures fell less than 0.1%, and contracts tied to the tech-heavy Nasdaq 100 were down 0.2%.
The Dow hit a record close for a third straight session on Tuesday but the other major indexes finished in the red, dragged down by softer-than-expected retail sales data.
The January nonfarm payrolls report, due out at 8.30 a.m. Eastern time on Wednesday, could have a much more sizable impact on stocks. Economists are forecasting that the U.S. added 75,000 jobs last month, according to a FactSet poll.
If the figures come in below expectations, that could bolster the case for the Fed to slash rates to prop up the faltering labor market. Most traders are pricing in either two or three cuts this year, according to the CME FedWatch tool.
Tuesday’s data “helped to validate the dovish arguments pushing for more rate cuts this year,” said Deutsche Bank macro strategist Henry Allen.
“There was even a growing sense that [Fed Chair Jerome] Powell might deliver another cut before departing if the data continued in that direction,” he added. Powell’s term ends on May 15, and there are two Fed policy decisions scheduled between now and then.
Oil prices were rallying on Wednesday. West Texas Intermediate U.S. prices rose 1.5% to $64.93 a barrel in early trading, while the Brent international benchmark climbed 1.4% to $69.77 a barrel.
The moves higher came as investors fretted that escalating tensions in the Middle East could disrupt crude flows. Trump administration officials have discussed whether to seize tankers transporting Iranian oil but have held off for now, The Wall Street Journal reported, citing U.S. officials.
The dollar slipped 0.2% against a weighted basket of its peers on Wednesday. The yield on the benchmark 10-year Treasury note slipped 1 basis point to 4.14%.
