US stocks were setting up for more losses on Wednesday as investors looked ahead to a speech by Federal Reserve Chair Jerome Powell amid worries that interest rates will stay higher for longer.
S&P 500 (^GSPC) futures slipped 0.2%, while Dow Jones Industrial Average (^DJI) futures held just below the flatline. Contracts on the tech-heavy Nasdaq 100 (^NDX) led declines, down almost 0.4%, after the major gauges closed in a sea of red.
Stocks have drifted away from their strong start to the year as robust economic data undermined hopes for three Fed rate cuts. Investors have scaled back their bets to the point where they expect a smaller, later easing than policymakers have projected.
The focus is now on Powell, whose speech on the economic outlook later Wednesday will be weighed for clues to whether the Fed’s June meeting will bring a policy pivot. Appearances by Michael Barr and other Fed officials will also be watched.
Eyes are also on who will win the bitter proxy battle between Disney and activist investor Nelson Peltz, with the results of a shareholder vote due later Wednesday. Signs are that Disney has secured enough backing to fend off the board shake-up put forward by Peltz’s Trian, sources told Reuters.
In single stock moves, Intel (INTC) shares fell around 5% in premarket trading after the chip company posted sharper operating losses at its foundry business.
Meanwhile, its rival TSMC (TSM) was forced to halt some chipmaking in the wake of a huge earthquake hit Taiwan, raising concerns about the supplier to Apple (AAPL) and Nvidia (NVDA). Its US-listed shares dipped slightly.
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