U.S. stock futures took a breather on Wednesday as investors looked to upcoming data for clues about the health of the economy and the possibility of further big interest rate cuts after Wall Street hit a record high.
Futures for the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) were little changed despite both indexes closing at record highs, while futures for the tech-heavy Nasdaq 100 (NQ=F) fell about 0.3%.
A modest rise in stock prices is faltering amid growing fears of a recession fueled by surprisingly weak consumer confidence. The debate is centered on whether the economic slowdown prompted the Federal Reserve to cut interest rates by a larger than usual 0.5% and how a further recession might affect further, larger cuts that are expected.
Read more: How the Federal Reserve’s rate cut will affect your bank accounts, CDs, loans and credit cards
Mortgage applications surged to the highest level since 2022, driven by homeowners looking to refinance their mortgages as interest rates fell, according to MBA data released before the market opened.
Data watchers will be looking for further insights when they get the latest data on home sales later on Wednesday, but attention is surely focused on Thursday’s second-quarter GDP release and Friday’s key PCE reading, the Fed’s go-to inflation gauge.
The parade of Fed speakers continues with Governor Adriana Kugler, whose remarks will be similarly scrutinized for insights into the size and pace of upcoming rate cuts when she takes the stage later Wednesday.
Meanwhile, the boost to markets from China’s massive stimulus package has faded amid growing skepticism about whether the measures will be successful in reviving the economy.