U.S. stock index futures were lower Wednesday as investors looked ahead to testimony from the highest-ranking Federal Reserve official while digesting mixed news around U.S.-China trade talks.
At 7 a.m. ET, Dow Jones Industrial Average futures fell 114 points, indicating a negative open of more than 104 points. S&P 500 and Nasdaq 100 futures also pointed to losses at the open.
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Fed Chair Jerome Powell said will address the Congressional Joint Economic Committee later in the day. Powell’s testimony comes after the Fed cut rates in October for the third time this year. After that meeting, Powell raised the bar for further cuts, but hinted the Fed was a long way off from raising rates.
The Fed’s most-recent rate cut helped the major averages reach record highs recently. In fact, the S&P 500 and Nasdaq Composite posted fresh intraday records on Wednesday. But uncertainty around U.S.-China trade has kept the rally in check over the past few days as investors seek out clues about the state of those negotiations.
The U.S. and China are reportedly at loggerheads over tariffs as they seek to conclude phase one of their trade deal. The Wall Street Journal reported Tuesday night, citing people familiar with the talks, that the impasse is on whether the U.S. should remove existing tariffs or would only cancel duties that are set to take effect on Dec. 15.
The report comes after President Donald Trump told the Economic Club of New York that China was “dying” to make a trade deal. However, Trump offered no detail about how talks have evolved. Trump also blamed previous U.S. administrations for letting China “cheat” on trade.
On the data front, there will be CPI numbers at 8:30 a.m. ET and Federal Budget figures released at 2 p.m. ET.
Source: cnbc.com | Original Link