(Reuters) – The S&P 500 and Nasdaq futures fell on Thursday over persistent inflationary pressures, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path.
Wall Street’s three major stock indexes closed lower on Wednesday with the Nasdaq’s 1% loss leading declines after stronger-than-expected services sector data fueled concerns that sticky inflation could lead to interest rates staying higher for longer.
Apple dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes.
Further denting sentiment, data showed China’s exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world’s second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings, JD.com, Baidu and Alibaba fell between 1.8% and 2.5%.
“The twin worries of China’s slowdown and the prospect of higher interest rates in the U.S. are proving hard to shift, spreading fresh unease among investors,” Susannah Streeter, head of money and markets at Hargreaves Lansdown said in a note.
“Lacklustre trading is set to be the order of the day given there is so little to pin more optimistic hopes on right now.”
Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
Traders’ bets on the Fed leaving interest rates unchanged in September stood at 93%, while their odds for a pause in the November meeting were at 53.5%, according to the CME FedWatch Tool.
At 5:30 a.m. ET, Dow e-minis were up 42 points, or 0.12%, S&P 500 e-minis were down 9 points, or 0.2%, and Nasdaq 100 e-minis were down 87 points, or 0.56%.
Investors also await initial jobless claims numbers for the week ended Sept. 2, due at 8:30 a.m. ET, as they parse through economic data for any indications of slowing inflation.
Megacap stocks Tesla and Nvidia lost 1.5% and 2.0%, respectively, in premarket trading.
Automation software firm UiPath added 4.6% on upbeat annual revenue forecast after it topped estimates for second-quarter results.
(Reporting by Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi)
