U.S. stock index futures fell in evening trading on Wednesday, extending losses from Wall Street’s earlier session. Investors showed caution due to upcoming cues on interest rates and inflation, leading to a retreat from the equity markets.
Profit-taking hit stocks after they reached record highs earlier in May. Sentiment was further dampened by weak earnings from Salesforce (NYSE: CRM), which saw its shares plummet nearly 16% in after-hours trading due to disappointing guidance.
As of 19:37 ET (23:37 GMT), S&P 500 futures were down 0.4% at 5,264.50 points, Nasdaq 100 futures fell 0.5% to 18,713.0 points, and Dow Jones futures slid 0.7% to 38,252.0 points.
NVIDIA Corporation (NASDAQ: NVDA), a notable performer in the chipmaking sector, declined 1% in after-hours trading, indicating that investor enthusiasm for the stock may be waning.
Wall Street Suffers Amid Persistent Rate Jitters Ahead of Key Economic Data
Wall Street indexes fell on Wednesday due to ongoing concerns about high interest rates, particularly with key inflation data expected on Friday. The PCE price index, the Federal Reserve’s preferred measure of inflation, is set to be released.
Ahead of that, a revised reading on first-quarter GDP is due on Thursday, anticipated to show resilience in the U.S. economy. This could provide the Fed with the justification to maintain higher interest rates for a longer period.
Throughout the week, hawkish comments from Fed officials have continued, emphasizing that inflation must decrease further before any interest rate cuts can be considered. Consequently, traders have largely dismissed the possibility of a rate cut in September.
The S&P 500 fell 0.7% to 5,266.95 points, the NASDAQ Composite dropped 0.6% to 16,920.58 points after a series of record highs, and the Dow Jones Industrial Average declined 1.1% to 38,441.54 points.
Aftermarket Movers: American Eagle Falls, HP Rises
In notable aftermarket movements, American Eagle Outfitters Inc (NYSE: AEO) saw its shares drop over 9% following weaker-than-expected quarterly earnings, as persistent inflation affected consumer spending.
UiPath Inc (NYSE: PATH), an artificial intelligence firm, plunged nearly 29% after its guidance fell short of market expectations.
Conversely, PC maker HP Inc (NYSE: HPQ) rose 2.2% after reporting better-than-expected quarterly earnings, bolstered by improving demand partly driven by AI advancements.
