Futures for the major U.S. stock indexes suggest a slightly lower open on Wednesday, following yesterday’s technology-driven declines.
Pre-market trading shows Target (NYSE:TGT) shares tumbling 10.1% after reporting a drop in second-quarter sales and announcing that COO Michael Fiddelke will replace CEO Brian Cornell.
Estée Lauder (NYSE:EL) is also under pressure, down 6.6% in pre-market trading, after the beauty company reported a significant fiscal fourth-quarter operating loss and provided disappointing guidance for fiscal 2026.
Conversely, Lowe’s (NYSE:LOW) is climbing 2.6% in early trading after posting stronger-than-expected second-quarter earnings and raising its full-year revenue forecast.
Overall market activity may remain muted as investors await the release of the Federal Reserve’s latest meeting minutes later today. The July meeting, which ended in a split decision to hold interest rates steady, could offer insight into the Fed’s rate outlook.
Tuesday saw stocks mostly lower following a choppy Monday. The Nasdaq experienced the sharpest drop, though the Dow ended essentially flat. The Nasdaq fell 314.82 points (1.5%) to 21,314.95, while the S&P 500 slipped 37.78 points (0.6%) to 6,411.37. The Dow rose slightly, adding 10.45 points to close at 44,922.27 after touching an intraday record high.
Tech weakness weighed heavily on the Nasdaq, with Nvidia (NASDAQ:NVDA) sliding 3.5% amid reports the company is exploring a “variety of products,” including a new AI chip for China. Meanwhile, the Dow was supported by Home Depot (NYSE:HD), which surged 3.2% despite posting second-quarter results slightly below analyst estimates, as the company maintained its full-year guidance.
Investors are also eyeing upcoming economic events, including the Jackson Hole Economic Symposium, which kicks off Thursday. Fed Chair Jerome Powell is scheduled to speak Friday, and his remarks could influence expectations for interest rates.
According to CME Group’s FedWatch Tool, the market currently sees an 86.9% probability that the Fed will cut rates by a quarter point at its September meeting. Key economic reports this week, including weekly jobless claims, existing home sales, and leading economic indicators, could also move markets.
On the U.S. economic front, the Commerce Department released data showing an unexpected jump in new residential construction in July.
Meanwhile, gold stocks fell sharply as gold prices declined, pushing the NYSE Arca Gold Bugs Index down 3.0%. Software stocks also struggled, with the Dow Jones U.S. Software Index dropping 2.0% to its lowest close in more than a month. Weakness extended to semiconductor, networking, and computer hardware stocks, contributing to the Nasdaq’s steep decline.
On the upside, commercial real estate, housing, and transportation stocks posted strong gains, partially offsetting losses in the technology and precious metals sectors.
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