U.S. Stock Futures Down As Markets Turn To Other Key Data

U.S. Stock Futures Down As Markets Turn To Other Key Data

U.S. Stock Futures are pointing to a negative opening today as European markets dive down on the back of weak performance by key companies. The market seems to be settling down with the Federal Reserve’s comments from yesterday and is focused on key economic data to be published later today.

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Fed’s comments weigh

During the early hours, S&P 500 Futures had shed 0.40% to 2,009.25, and Nasdaq Futures fell 0.48% to 4,367.25. On Wednesday, the Fed had kept interest rates as is and had lowered the rate hike outlook by stating that it might increase rates only twice this year as compared to the earlier projection of four. The central bank cited global economic uncertainties as the factor behind its dovish comments.

Meanwhile, the Fed has also revised its inflation and growth projection downward as the bank’s chief Janet Yellen was upfront in stating that the recent rebound in economic data cannot be taken as a confirmed trend. Thus, the bank will embrace caution as far as hiking interest rates is concerned.

Other key data awaited

Following these comments, the market might be expecting a rate hike in June, but Morgan Stanley (NYSE: MS) has disappointed such beliefs by stating that the possibility of a June hike is below 50%. The dovish comments have sent the U.S. dollar to five-month lows.

Later today, the market will be tuned to secondary data such as weekly jobless claims, February leading indicators, the Philadelphia Fed Survey and the fourth-quarter current account data.

Apart from this, the rebound in oil prices might offer some support to the markets today. The commodity is trading above $41 per barrel, closer to its 2016 peak level. The revelation that oil producers are set to meet on April 17 to discuss an output freeze proposal has helped send oil prices higher.