Wall Street Futures Slip as Eyes Turn to Retail Earnings and Fed Signals

 

U.S. futures opened lower on Wednesday amid lingering unease from a tech-driven downturn. Investors are now tuning in to a busy slate of retail earnings and the much-anticipated Federal Reserve symposium later this week.
After hitting a rough patch Tuesday, the Nasdaq and S&P 500 suffered their sharpest declines in over two weeks, highlighting investor concerns about inflated valuations in the technology sector.
Adding to the tension, reports emerged that the U.S. administration is considering taking equity stakes in chipmakers in exchange for CHIPS Act grants—just weeks after entering revenue-sharing arrangements with Nvidia and AMD.
In early trading, Nvidia, AMD, and Intel all dipped slightly. With Nvidia’s earnings report slated for August 27, market watchers are keeping a close eye on its performance. “This may be a needed rebalancing after an extraordinary run,” noted Danni Hewson of AJ Bell. “All eyes are on Nvidia’s upcoming results.”
Retail earnings are also at the forefront. Lowe’s slipped 1% after Home Depot disappointed the previous day. Estee Lauder dropped 4.3%, while Target and TJX traded cautiously ahead of their earnings announcements. Walmart’s report is expected Thursday.
Market sentiment was reflected in futures: Dow E-minis shed 69 points (0.15%), S&P 500 E-minis dropped 8.5 points (0.13%), and Nasdaq 100 E-minis declined 40.25 points (0.17%).
The Federal Reserve’s July meeting minutes are due at 2:00 p.m. ET—possibly offering direction ahead of Chair Powell’s big speech at the Jackson Hole symposium, happening August 21–23. Markets are factoring in a 25-basis-point rate cut in September, but many analysts caution Powell could deliver a tougher stance, emphasizing inflation and tariff-related concerns. Remarks from Fed officials Christopher Waller and Raphael Bostic are also expected today.
With tariffs yet to fully impact the economy, some strategists forecast the S&P 500 may end the year just shy of its current highs. In trade news, a 50% tariff was slapped on over 400 steel and aluminum derivatives. On a brighter note, Futu Holdings jumped 4.3%, buoyed by strong quarterly revenue.