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Futures up: Dow 0.29%, S&P 500 0.31%, Nasdaq 0.33%
Jan 8 (Reuters) - U.S. stock index futures edged higher
on Wednesday, with investors awaiting a set of employment
figures and minutes from the Federal Reserve's latest meeting, a
day after worries of persistent price pressures sparked caution
on Wall Street.
At 5:36 a.m. ET, Dow E-minis were up 123 points, or
0.29%, S&P 500 E-minis were up 18.5 points, or 0.31% and
Nasdaq 100 E-minis were up 70.25 points, or 0.33%.
Wall Street's main indexes ended lower in the previous
session, with the benchmark S&P 500 and the tech-heavy
Nasdaq logging their biggest daily declines since the
Fed's December meeting, when the central bank issued a cautious
stance on upcoming interest rate cuts.
Markets fell after data reflected a robust labor market and
upbeat services activity, causing investors to push back
expectations on the Fed's first rate cut to June, after which it
is expected to stay on hold for the rest of the year, according
to the CME Group's FedWatch Tool.
Limiting gains on equities, the yield on the benchmark
10-year Treasury bond is pinned at an eight-month
high and analysts say markets could be volatile this year
against the backdrop of stretched equity valuations and
uncertainty regarding President-elect Donald Trump's policies.
Focus will now be on the ADP National Employment Report for
December and weekly jobless claims data, both due before markets
open, along with comments from Fed Governor Christopher Waller.
The data could offer hints on what to expect from Friday's
crucial non-farm payrolls numbers.
Minutes from the Fed's December meeting is due at 2:00 p.m.
ET, and could shed further light on the central bank's monetary
policy outlook this year.
"It would be interesting to see how concerned Fed members
really are about the inflation outlook, potentially justifying
the significant revisions in the December (Personal Consumption
Expenditure) inflation projections, and whether the December
rate cut was a compromise between the hawks and doves ahead of
Trump's second presidency," said Achilleas Georgolopoulos,
market analyst at brokerage XM.
Politics is also top on the minds of investors as they
anticipate policy changes after Trump's inauguration later this
month.
His proposals, including mass deportations and tariffs,
could trigger inflation pressures and spark a global trade war,
although most analysts say the surcharges could be used more as
a negotiating tool.
Among top premarket movers, Nvidia ( NVDA ) rose 1.8% after
the chip giant notched its biggest one-day drop on Tuesday since
early September 2024.
Quantum-computing stocks Rigetti Computing ( RGTI ) fell
16.8%, IonQ ( IONQ ) dropped 8.9% and Quantum Computing ( QUBT )
lost 17.7% after Nvidia ( NVDA ) boss Jensen Huang said computers based
on the emerging technology are as much as 30 years away.
Tapestry rose 2.4% after Barclays upgraded the
luxury name to "overweight" from "equal weight".
Quarterly corporate updates are also on the horizon with big
banks such JPMorgan Chase & Co ( JPM ) and Wells Fargo ( WFC )
among those expected to kick off the earnings season next week.
Markets will be closed on Thursday for a national day of
mourning to mark the death of former President Jimmy Carter.