US pre-open: Futures slightly lower after S&P 500's record close

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday after the S&P 500 closed at a fresh record high a day earlier. As of 1245 GMT, Dow Jones futures were down 0.15%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.10% and 0.05% weaker, respectively.

The Dow closed just 10.26 points higher on Tuesday as concerns regarding sticky inflation and Donald Trump's trade policies remained in focus after he floated the idea of imposing a 25% tariff on automotive, semiconductor and pharmaceutical imports.

Trade Nation's David Morrison said: "The US economy is robust, unemployment is low, interest rates are 100 basis points below where they were in early September and the Trump administration is promising deregulation, while actively slashing government expenditure. The fly in the ointment remains President Trump's tariff threats, and his willingness to carry them through. Investors could look to slash their exposure to equities should tariffs turn out to be more than a negotiating tactic.

"But for now, investors are giving Mr Trump the benefit of the doubt. As such, the consolidation that has been evident over the last two months or so could provide a base from which US indices can push higher. It will help if Treasury yields continue to pull back, and a downward trend begins to appear. The Fed will release the minutes of the FOMC's last meeting later this evening."

On the macro front, mortgage applications fell 6.6% in the week ended 14 February, according to the Mortgage Bankers Association of America, reversing the two prior weeks' increases and marking the sharpest decline so far this year despite another week of softening in benchmark interest rates. Applications to refinance a mortgage sank by 7%, while applications to purchase a new home fell by 6%.

Still to come, building permits and housing starts data will be published at 1330 GMT, while minutes from the Federal Open Markets Committee's latest policy meeting were slated for release at 1900 GMT.

In the corporate space, shares in online dating firm Bumble were down double digits ahead of the bell after issuing disappointing Q1 guidance, while Arista Networks shares also traded lower despite quarterly earnings and revenue topping Wall Street expectations.







Reporting by Iain Gilbert at Sharecast.com