U.S. stock futures fell Wednesday as investors awaited the minutes from the Federal Reserve’s most recent policy meeting. At 03:00 ET, S&P 500 futures were down 0.2%, Nasdaq 100 futures fell 0.3%, and Dow futures dropped 0.2%. Tuesday’s trading ended mixed, with the S&P 500 and Nasdaq lower, while the Dow edged up.
Potential Fed Divisions Ahead
The minutes may reveal divisions within the Fed, following dissent by two officials—Christopher Waller and Michelle Bowman—at the previous meeting, the first double dissent since 1993. Markets are pricing in a possible 0.25% rate cut next month, with another potential reduction later in the year. Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday will be closely watched for further clues on monetary policy.
Retail Sector in Focus
Target (NYSE:TGT) kicks off a busy retail earnings week, reporting Q2 results before the market opens. Analysts expect EPS of $2.03 and revenue of $24.93 billion. Investors will monitor updates on tariffs, digital sales, and competition from Walmart and Amazon. Other major retailers reporting this week include Lowe’s (NYSE:LOW), TJX (NYSE:TJX), and Home Depot (NYSE:HD).
Government Stakes in Semiconductor Firms
The U.S. government is exploring equity stakes in semiconductor companies receiving CHIPS Act subsidies, including Intel, Micron, TSMC, and Samsung, in exchange for grants. This represents a significant shift in industrial policy, giving the government a direct role in key strategic industries.
Musk Pulls Back from Politics
Tesla CEO Elon Musk is reportedly putting his plans for a new “America Party” on hold to focus on his businesses. The move is expected to reassure investors concerned about potential distractions from Tesla operations.
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