US stock index futures pointed to a flat open on Wednesday, as investors concentrate on fluctuating oil prices and key data releases ahead of a key speech by the Federal Reserve’s Chair.
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Yellen has sought to move the Fed away from its so-called “forward guidance” approach, a communication tool that was used to provide reassurance that monetary policy would remain accommodative.
Recent hawkish comments from some Fed officials, including Vice Chairman Stanley Fischer, have raised expectations that Yellen might signal a hike in September.
Wall Street has been on a record-setting run due to continued expectations for low rates, coupled with upbeat corporate earnings and strong economic data. “Its outlook has pivotal implications for both the likely future path of the fed funds rate and the way in which monetary policy is conducted in the future”.
“This is going to be a lackluster drift upwards, with perhaps some stocks that have really run-up being the targets for some profit-taking”, said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
At 11:06 a.m. ET the Dow Jones Industrial Average .DJI was down 42.35 points, or 0.23 percent, at 18,504.95.
Nasdaq 100 e-minis were up 4.25 points, or 0.09 percent, on volume of 17,798 contracts.
The U.S. dollar USDJPY, -0.05% was changing hands at ¥100.19 yen, compared with ¥100.25 late Tuesday in NY.
The euro was down 0.1 percent against the greenback at $1.1294, creeping 0.1 percent higher against the yen to 113.43 and the Pound slipped 0.2 percent to $1.3172 after touching a three-week high of $1.3210 overnight after manufacturing exports data suggested that Britain’s economy is holding up surprisingly well in the aftermath of its vote to exit the European Union.
Traders are pricing in a 26 per cent chance the U.S. central bank will hike rates at its September 20-21 meeting, and and a 54 per cent probability of a boost by year-end, based on the assumption that the effective fed funds rate will trade at the middle of the new FOMC target range after the next increase.
Wall Street was lower on Wednesday, led by declines in technology and defensive stocks as investors weighed up the possibility of a rate hike in the coming months.
Express Inc EXPR.N plunged 24.7 percent after the apparel maker slashed its full-year earnings outlook.
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Declining issues outnumbered advancing ones on the NYSE by 1,816 to 968.
