Wall Street Futures are Down as Investors Awaited Key data from Federal Reserve

Good morning.

Wall Street futures are down as investors awaited key data including the Federal Reserve’s report on the state of the U.S. economy for clues on the central bank’s interest rate path. Investors also worried that higher oil prices might lead to increased inflation and potentially hinder the outlook for global economic growth.

Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to the pressures the industry already faces from expensive labor contracts.

In Tuesday’s trading session, Wall Street’s major indexes closed in the red. Homebuilder stocks retreated after the yield on the 10-year Treasury note climbed to a 1-week high, with Lennar Corporation (LEN) plunging over -4% and Toll Brothers Inc (TOL) slumping more than -5%.

Today, markets await a slew of fresh economic data, including the S&P Global flash U.S. composite PMI index and the ISM non-manufacturing PMI for signs of cooling inflation.

Shares of Apple slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work or bring them into their offices.

Silicon Valley-based artificial intelligence chip startup d-Matrix has raised $110 million from investors that include Microsoft Corp at a time when many chip companies are struggling to raise cash. D-Matrix designs chips that are optimized to help power generative AI applications such as ChatGPT.

Uranium soared to over $60 per pound at the start of September, extending gains for an eighth week to levels last seen in April amid persistent supply risks and bullish long-term demand.

WTI crude futures are below $87 per barrel. Gold held below $1,930 an ounce while the yield on the US 10-year Treasury note continued to march higher to above 4.2% as traders reassess the monetary policy outlook.

Have a great day.