U.S. stock index futures were weak on Wednesday as investors anticipated a week of economic data, including producer prices and retail sales, to determine the Federal Reserve's rate-cut path.
Oracle (ORCL.N), opens new tab shares rose and somewhat hot consumer price data didn't discourage investors' anticipation of interest-rate reduction in the coming months, sending the S&P 500 to a new record high on Tuesday.
According to the CME FedWatch Tool, traders expect the first rate cut in June at 66%. Since March 2022, the Fed has lifted its policy rate by 525 basis points to 5.25%–5.50%.
"While the February CPI data was noisy across segments, we believe the U.S. economy continues to be in good shape and is heading for a soft landing," said UBS Global Wealth Management chief investment officer Mark Haefele.
Economic data, including February producer prices on Thursday, may shed light on inflation in the world's largest economy. Dow and S&P 500 e-minis were flat at 05:00 a.m. ET, while Nasdaq 100 were down 16.25 points, or 0.09%.
Even if it is uncertain whether equities are in a bubble or a strong bull run, some market participants feel the relentless U.S. stock market rally is about to pause.
Many megacap growth and technology stocks fell premarket. The AI powerhouse Nvidia (NVDA.O) opened new tab up 0.8% after rising 7.1% the previous session.
After the Pentagon withdrew its $2.5 billion chip grant, Intel (INTC.O) fell 1.3%. GE HealthCare Technologies (GEHC.O) fell 3.6% as General Electric (GE.N) decreased its shareholding in the medical equipment company.
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