Stock futures were lower Wednesday as investors watch developments in the Middle East and the U.S. port strike, while awaiting important labor market data in the coming days.
Futures tied to the Dow Jones Industrial Average were down 0.2%, while those linked to the S&P 500 and Nasdaq 100 each fell 0.3%. The major indexes fell sharply on Tuesday, retreating from record high levels that had been reached in late September amid optimism about the U.S. economy and expectations that the Federal Reserve will continue cutting interest rates.
Large-cap tech stocks, which led the broader market decline on Tuesday, were mostly lower ahead of the opening bell Wednesday. AI chipmaker Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL) all lost ground, while Meta Platforms (META) was up slightly.
Nike (NKE) shares were down 8% in premarket trading after the apparel and equipment giant withdrew its full-year outlook and said it plans to postpone its upcoming investor day ahead of the company’s transition to a new CEO later this month.
Crude oil futures were up 3%, extending a rally that started Tuesday following news that Iran had launched a barrage of missiles into Israel. Just as they did yesterday, shares of energy and oilfield services companies were gaining ground in tandem with the rise in oil prices, with Marathon Oil (MRO), ConocoPhillips (COP), Occidental Petroeum (OXY) and Halliburton (HAL) all solidly higher.
The economic data calendar is light on Wednesday, ahead of a handful of indicators tomorrow and the highly anticipated release on Friday of the September jobs report. Investors are keeping a close eye on the data releases, as well as comments from Fed officials who are scheduled to speak, for indications of how aggressive the central bank will be in cutting interest rates. The Fed cut its benchmark lending rate last month for the first time in four years.
One big new variable that could affect the outlook for inflation and the labor market—the two areas the Fed monitors most closely—is the port strike that kicked off on Tuesday. The work stoppage affects 14 ports stretching from Maine to Texas that handle about two-thirds of U.S. imports, and could have a wide-ranging and damaging impact on the economy.
Gold futures were down 0.7% to around $2,670 after rising in the previous session to near-record-high levels. Bitcoin was up slightly at just over $61,000.