US STOCKS-Wall St set for weak open ahead of Fed minutes

Anisha Sircar and Devik Jain
·3 min read

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* FOMC May meeting minutes due at 1400 ET (1800 GMT)

* Nordstrom climbs after raising profit outlook

* Futures down: Dow 0.38%, S&P 0.38%, Nasdaq 0.42% (Adds comment, details; updates prices)

By Anisha Sircar and Devik Jain

May 25 (Reuters) - U.S. stock indexes were set for a lower open on Wednesday ahead of minutes from the Federal Reserve's May meeting, which will likely offer clues on the path of future rate hikes amid worries about slowing economic growth.

The minutes are due at 1400 ET (1800 GMT). U.S. Federal Reserve Chair Jerome Powell has promised to keep pushing on rate hikes until there is clear and convincing evidence that inflation is dropping.

"You will see a little more of a hawkish tone (today) and a bit more pivot from full employment to making sure that inflation is being fought," Mike Mullaney, director of global markets research at Boston Partners, said.

"If the Fed continues on the path they've suggested, you'll see a greater probability of a recession in 2023."

The S&P 500 and the Nasdaq ended lower in the previous session on worries that aggressive moves to curb decades-high inflation might tip the U.S. economy into recession, while a profit warning from Snap Inc also roiled markets.

The benchmark index is down 17.3% so far this year, while the Nasdaq has fallen 28%.

The U.S. central bank at its May meeting raised the benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, and set its target federal funds rate to a range between 0.75% and 1% in a unanimous decision.

Money markets are pricing in 50 basis point hikes in June and July..

"If we do force a recession, there's still more downside risk for the S&P 500. You could see a 5% to 6% rally at any point, but it basically becomes a dead cat bounce," Mullaney added.

At 8:46 a.m. ET, Dow e-minis were down 120 points, or 0.38%, S&P 500 e-minis were down 15 points, or 0.38%, and Nasdaq 100 e-minis were down 49.75 points, or 0.42%.

Nordstrom Inc rose 4.4% in premarket trading after the upscale retailer raised its annual profit and revenue forecasts, counting on demand from affluent consumers to help it overcome price pressures.

Wendy's Co jumped 8.9% after a regulatory filing showed the burger chain's largest shareholder Nelson Peltz was considering a potential takeover bid for the company.

Megacap growth stocks fell, with Tesla Inc and Apple Inc down 1% each.

The CBOE volatility index, also known as Wall Street's fear gauge, rose for the second straight day and was last up at 30.08 points. (Reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • 3 Things to Know About Paris Hilton's 2 Kids

    Paris Hilton shares son Phoenix and daughter London with her husband Carter Reum

  • Canadian charity says aid truck bombed in Gaza in 'targeted' attack

    A Canadian humanitarian organization says its primary water aid truck was bombed in Gaza and is calling on the federal government to mount a full investigation into what it believes was a "targeted" incident.The International Development and Relief Foundation (IDRF), a registered non-profit based in Toronto, told CBC News the truck was bombed in the early hours of Wednesday morning and that no one was hurt in the incident. Zeina Osman, the IDRF's director of impact, said the aid truck is believe

  • Man held after bomb threat at Iran consulate in Paris

    STORY: A police source told Reuters the man was seen at about 11 a.m. (0900 GMT) entering the consulate, carrying what appeared to be a grenade and explosive vest. Police cordoned off the area.The man later left the consulate and was then arrested, a police source said. The TV channel BFM said he had been carrying replica grenades.A police source said it was the same man who had been suspected of attempted arson near the Iranian consulate in an incident last September.Le Parisien newspaper said on its website that, according to several witnesses, the man had dragged flags on the floor of the consulate and said he wanted to avenge the death of his brother.It was unclear whether the incident had any link to current tensions between Iran and Israel.

  • North Korea says it tested 'super-large' cruise missile warhead and new anti-aircraft missile

    Korean Central News Agency released photos showing at least two missiles being fired off launcher trucks on a runway. The missiles in the image were not identified. State media said North Korea's missile administration on Friday conducted a 'power test' for the warhead designed for the Hwasal-1 Ra-3 strategic cruise missile and a test-launch of the Pyoljji-1-2 anti-aircraft missile.

  • Trump campaign falsely claimed twice this week that he’s ‘stormed’ out of court

    A reporter from The Indpendent, who has been observing proceedings all week, says claims of the former president’s defiant exit on Friday were not entirely accurate

  • The NBA's newest stars have an opportunity in these playoffs: Who's ready to take the torch?

    Anthony Edwards, Shai Gilgeous-Alexander and the next generation of NBA superstars have a big challenge ahead on the league's biggest stage.

  • Weekend warming up before cooling off again

    Weekend warming up before cooling off again

  • Azerbaijani journalist remanded in latest move against independent media

    Turan said Imran Aliyev, head of the Meclis.info outlet, which reports mainly on Azerbaijan's parliament, was being held in connection with a case against the Abzas Media group. Police last November said they had found 40,000 euros ($42,700) in cash in the media outlet's Baku offices. Aliyev has been subjected to electric shocks and beatings since being taken into custody at Baku airport on Thursday, Turan quoted the journalist as saying.

  • Bitcoin's latest 'halving' has arrived. Here's what you need to know

    NEW YORK (AP) — The “miners” who chisel bitcoins out of complex mathematics are taking a 50% pay cut — effectively reducing new production of the world’s largest cryptocurrency, again. Bitcoin's latest “halving" appeared to occur Friday night. Soon after the highly anticipated event, the price of bitcoin held steady at about $63,907. Now, all eyes are on what will happen down the road. Beyond bitcoin’s long-term price behavior, which relies heavily on other market conditions, experts point to po

  • What is "pig-butchering"? Scam trend costs Americans millions

    A massive bust in New York is making national headlines this month. Prosecutors in Brooklyn seized nearly two dozen web domains associated with a scheme known as "pig butchering." But what is "pig butchering?" In short, it's when scammers strike up online conversations with unsuspecting victims, gain their trust, and then manipulate them into making bogus cryptocurrency investments.

  • School district administration criticizes board's decision to cancel gay actor's visit

    Cumberland Valley School District's superintendent and other administrators sent a letter to staff and faculty this week rebuking a vote by board members to cancel an anti-bullying event featuring a gay actor and author.

  • 15 Best Places to Retire in Ohio

    This article takes a look at the 15 best places to retire in Ohio. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Best Places to Retire in Ohio. Adieu, Baby Boomers The last of America’s Baby Boomers will soon be entering retirement. The […]

  • Teachers say lawmakers should prioritize school funding over legislation like ‘pronoun bill’

    Educators say bills aimed at transgender students that continue to move through the Arizona Legislature are a distraction from issues such as school funding. Senate Bill 1166, which would require schools to notify parents within five days if a teacher or contractor calls a student by a different name or pronoun, has passed the Senate and is moving through the House.

  • UPDATE 1-Bitcoin 'halving' has taken place, CoinGecko says

    Bitcoin, the world's largest cryptocurrency, on Friday completed its "halving," a phenomenon that happens roughly every four years, according to according to CoinGecko, a cryptocurrency data and analysis company. Bitcoin was fairly stable immediately afterward, falling 0.47% to $63,747. Bitcoin enthusiasts had eagerly waited for the "halving" - a change to the cryptocurrency's underlying technology designed to cut the rate at which new bitcoins are created.

  • Coyotes' move to Salt Lake City elicits opposing responses in 2 cities

    PHOENIX (AP) — NHL Commissioner Gary Bettman sat next to the former Arizona Coyotes owner in a downtown Phoenix hotel meeting room, trying to put a positive spin on the funeral for a franchise. Later Friday, Bettman sat next to the new Coyotes owner in Salt Lake City to bask in the excitement of the league's newest city and a fan base that had been itching for another team to join the NBA's Utah Jazz. One day, two drastically different news conferences for the same hockey team. "If you look back

  • Collin Morikawa part of 4-way tie for the lead at Hilton Head. Scottie Scheffler lurks 3 shots back

    HILTON HEAD ISLAND, S.C. (AP) — Collin Morikawa had another solid round Friday in the RBC Heritage with a 5-under 66 and appears to be getting back to the reliable form that made him a two-time major champion. Masters champion Scottie Scheffler's form never seems to change. Even after an emotionally taxing victory at Augusta National, a quick trip home to Dallas and only nine holes of practice, the world's No. 1 player is right in the mix. It's crowded at the top after two days of warm, ideal co

  • Phillies' Turnbull loses no-hit bid when Sheets singles for White Sox in 7th inning

    PHILADELPHIA (AP) — Philadelphia's Spencer Turnbull lost his bid for a second career no-hitter when he allowed a one-out single in the seventh inning Friday night to Gavin Sheets of the Chicago White Sox. The 31-year-old Phillies right-hander pitched a no-hitter for Detroit against Seattle on May 18, 2021, his only complete game in 63 starts entering the night. He walked one and struck out six over the first six innings. Sheets singled on a line drive to right field. Turnbull is 1-0 this season

  • Investigating signature fraud in Arizona's elections

    Investigating petition fraud.

  • Palm Beach Gardens, Dwyer tie 3-3 at Roger Dean Chevrolet Stadium

    The baseball regular season will wrap up next week ahead of the district tournament.

  • When Will Poseidon Nickel Limited (ASX:POS) Breakeven?

    With the business potentially at an important milestone, we thought we'd take a closer look at Poseidon Nickel...