U.S. stock futures paused on Wednesday following recent record highs on Wall Street, as investors turned their attention to upcoming economic data for insights into the health of the economy and the potential for another significant interest rate cut.
Futures for the S&P 500 and Dow Jones Industrial Average remained mostly unchanged after both indices set new closing records. Meanwhile, contracts for the tech-heavy Nasdaq 100 dipped about 0.3%.
This modest rally in stocks is losing momentum amid rising recession concerns, exacerbated by an unexpectedly weak consumer confidence report. The discussion revolves around whether the Federal Reserve’s recent 0.5% rate cut was a response to economic slowing and what further weakness could indicate for future cuts.
In other news, mortgage applications surged to their highest level since 2022, driven by homeowners looking to refinance as interest rates decline, according to data from the Mortgage Bankers Association.
Later on Wednesday, attention will turn to the latest home sales figures for additional insights. However, the main focus will be on Thursday’s second quarter GDP report and Friday’s important reading of the PCE index, the inflation measure preferred by the Fed.