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S&P, Nasdaq and Dow futures flat
May 8 (Reuters) - U.S. stock index futures were muted on
Wednesday after a strong run of gains that pushed the benchmark
S&P 500 to over three-week highs, as investors sought more
clarity on the Federal Reserve's plans for interest rate cuts.
The S&P 500 closed higher for a fourth straight
session on Tuesday, its best winning run since March, while the
blue-chip Dow scored a fifth session of gain in its
longest positive run since December 2023.
Markets have mostly traded higher so far in May, as
investors took comfort from an upbeat earnings season as well as
a recent softer-than-expected labor market report, which
tempered concerns about the Fed keeping interest rates higher
for longer.
Investors will focus on comments on Fed Vice Chair Philip
Jefferson, Boston Fed President Susan Collins and Governor Lisa
Cook during the day for fresh clues on the central bank's
monetary easing plans.
With the earnings season at its tail-end and only a few
economic reports expected this week, markets are now awaiting
next week's consumer prices reading to gauge if inflation is
cooling.
Traders are pricing in a 49% chance of the U.S. central bank
cutting interest rates by 25 basis points in September,
according to the CME Group's Fedwatch tool, up from 43% a week
ago. They are also pricing in a 36% chance of another rate cut
in December.
By 5:56 a.m. ET, S&P 500 e-minis were up 0.25
points. Nasdaq 100 e-minis slipped 3.5 points, or 0.02%,
and Dow e-minis were up 13 points, or 0.03%
Overall, the first-quarter earnings have been much better
than expected. Of the 424 S&P 500 companies that reported
through Tuesday, nearly 78% topped analysts' estimates,
according to LSEG data. In a typical quarter, 67% beat
estimates.
Uber ( UBER ), Fox Corp ( FOXA ) and Philip Morris ( PM ),
among other U.S. companies, will report results before the
opening bell.
Reddit ( RDDT ) climbed nearly 14% premarket after the
social media platform said it could post an adjusted profit in
the second quarter, thanks to its booming advertising business
and content-licensing deals with AI companies.
Lyft ( LYFT ) climbed 5.4% after the ride-hailing company
projected higher-than-expected gross bookings and a core profit
for the current quarter. Rival Uber ( UBER ) also gained 3.3%.
Rivian slid 4.3% after the electric-pickup truck
maker stuck to a 2024 production forecast that was well below
Wall Street targets and reported a wider-than-expected
first-quarter loss as it ended a weeks-long manufacturing halt.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini
Ganguli)