Futures Waver Ahead of Economic Data


U.S. stock futures wobbled ahead of economic data and earnings from major technology companies. 

Futures tied to the S&P 500 oscillated between small gains and losses, pointing to the broad-market index holding on to its recent declines. It has lost 2.4% this week so far. Nasdaq-100 futures were also little changed, suggesting muted moves for technology stocks after the opening bell. 

Stocks have come under pressure in recent days from a series of data releases that showed contractions in the manufacturing and services sectors. Federal Reserve officials have also signaled that interest rates are likely to continue increasing to fight inflation. The central bank begins its annual economic policy symposium in Jackson Hole on Thursday and Fed Chairman

Jerome Powell

is set to speak on Friday. 

“Growth is falling quite precipitously everywhere. We’ve had a pretty big signal of weakening economic conditions,” said Fahad Kamal, chief investment officer of Kleinwort Hambros. “But I think we’ll see Powell stick to his hawkish tone, he has to keep talking tough on inflation. That means more volatility for markets and more questions about the depth of the recession.”

Investors are awaiting data on durable and capital goods orders for July at 8:30 a.m. ET for more insight into the health of the economy. Tech giants

Salesforce

and

Nvidia

are scheduled to report earnings after markets close. 

The yield on the benchmark 10-year Treasury note edged up to 3.057% from 3.053% on Tuesday, extending a three-day climb. The yield curve continues to be inverted, flashing a recessionary signal, with the two-year yield at 3.301%.

Oil prices climbed for a second day after Saudi Arabia and some of its OPEC+ allies suggested a cut to output, citing high volatility. Global crude benchmark Brent rose 0.9% to trade at $101.15. 

Traders worked at the New York Stock Exchange on Monday.



Photo:

Courtney Crow/Zuma Press

Overseas, the pan-continental Stoxx Europe 600 added 0.1%. In Asia, major benchmarks declined with the Shanghai Composite Index falling 1.9% and Hong Kong’s Hang Seng down 1.2%. 

Chinese real-estate developer Logan Group declined more than 50% after its shares resumed trading on Wednesday. 

“There’s a lot of pessimism regarding the housing market in China, it looks really ugly with the mortgage repayment strikes,” said Olivier Marciot, investment manager at Unigestion. “The investment community is looking for signs that things are stabilizing on that front in China, which we haven’t got at the moment.”

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com

We want to hear from you