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U.S. stock markets were set to open in the red on Wednesday, giving back some gains from the previous session’s tech-led rally. Attention will be on continued volatility in Chinese markets and the release of minutes from the Federal Reserve’s September meeting.
Dow Jones Industrial Average futures were down 71 points, or 0.2%. S&P 500 futures were falling 0.2% and Nasdaq 100 futures were dropping 0.3%.
Minutes from the Federal Reserve’s September meeting will be released on Wednesday and will give more detail about officials’ decision to lower interest rates by half a percentage point last month.
Since the last Fed meeting, September jobs data came in much stronger than expected. Jobs growth surged, the unemployment rate fell, and the past two months’ hiring totals were revised up.
“The market has already scaled back around 30 basis points from the 2024 Fed easing cycle over the last few weeks but equally we doubt investors are in the mood to re-price an aggressive Fed easing cycle just yet,” wrote ING analyst Chris Turner in a research note.
The yield on the benchmark 10-year Treasury note stood at 4.019% early Wednesday, broadly flat from the previous day.
Elsewhere, the Chinese stock rally continued to falter as investors hoped for more stimulus from Beijing. Hong Kong’s Hang Seng Index was down 1.6% and the Shanghai Composite Index dropped 6.3%.
China’s finance ministry is set to hold a media briefing Saturday, reigniting expectations that the Chinese government is readying fiscal stimulus to boost the economy.
