US stock futures moved slightly lower on Wednesday as investors awaited minutes from the Federal Reserve’s September policy meeting, while corporate developments at SpaceX, Constellation Brands and Levi Strauss were also in focus.
At 06:56 GMT, Dow futures were down 108 points, or 0.2%, while S&P 500 futures were broadly unchanged. Nasdaq 100 futures declined 28 points, or 0.1%.
The main Wall Street indices closed slightly higher in the previous session, although they finished below their intraday highs.
US and French government bond markets stabilised following recent selling, although benchmark 10-year yields moved higher. Analysts at Vital Knowledge said investors remained uncertain that “this asset class can sustain a material rally”, citing increased artificial intelligence investment and an expected “tidal wave” of debt issuance.
Oil prices initially declined before recovering as investors assessed Middle Eastern crude shipments, transportation costs and the availability of refined products.
Investors Await Federal Reserve Minutes
The Federal Reserve is due to release minutes from its September meeting, when policymakers increased interest rates for the first time since 2023.
The Fed’s projections indicated the possibility of further rate increases before the end of the year as policymakers continued to address inflation, which has remained above the central bank’s 2% target.
However, market expectations for another increase at the Fed’s next meeting have declined following comments from policymakers and weaker-than-expected employment data.
The minutes could provide additional information about policymakers’ views on inflation, employment and the future path of interest rates.
SpaceX Reportedly Seeks $40 Billion for Nvidia Chip Purchases
SpaceX (NASDAQ:SPCX) is seeking to raise approximately $40 billion to finance purchases of Nvidia (NASDAQ:NVDA) chips, according to a Financial Times report citing people familiar with the matter.
The proposed financing would include approximately $10 billion in bank loans and $30 billion of investment-grade debt, according to the report.
Apollo Global (NYSE:APO) is expected to lead the financing and assist with marketing the debt, while Pimco is reportedly among a group of potential lenders.
The financing would support purchases of computing infrastructure used for artificial intelligence. Elon Musk has previously said SpaceX would exclusively use Nvidia chips in its Colossus data centres.
Constellation Brands Shares Fall After Quarterly Results
Constellation Brands (NYSE:STZ) shares declined in after-hours trading despite the company reporting second-quarter adjusted earnings and sales above market expectations.
Net sales for the quarter ended August 31 increased 6% to $2.63 billion, while adjusted earnings per share reached $3.74. Both figures exceeded Wall Street expectations, according to LSEG data cited by Reuters.
Beer depletions, which measure distributor sales to retail accounts, declined 0.6%. TD Cowen analysts said the figure was 70 basis points below expectations.
Constellation maintained its full-year financial guidance. TD Cowen said the guidance implies that second-half sales “will be down [roughly] 2% at the midpoint.”
Constellation also said it would pay $75 million following the completion of its acquisition of vodka-based ready-to-drink beverage company SpikedAde, with potential additional payments of up to $278 million over five years.
Levi Strauss Results Due After Market Close
Levi Strauss (NYSE:LEVI) is scheduled to report its results after Wednesday’s closing bell.
The company’s shares have declined by more than 1% since the beginning of the year, despite Levi Strauss raising its full-year profit outlook in July.
At the time, Chief Executive Michelle Gass said the company was seeking to capture a “sizable premium segment” that it had not previously accessed. Levi Strauss has introduced baggier styles aimed at younger consumers while expanding its higher-margin direct-to-consumer operations.