U.S. stock futures pointed to a muted open on Thursday as the market focuses on how quickly the Federal Reserve is likely to lower interest rates.
Dow Jones Industrial Average futures were up 23 points, or 0.1%. S&P 500 futures and those tied to the Nasdaq 100 futures were also rising down 0.1%.
The major indexes have dropped for two days in a row, eroding some of the gains seen for financial stocks and technology companies in the wake of the Fed’s interest-rate cut earlier this month.
“There hasn’t been a major catalyst driving this, but decent US housing data and stronger oil prices yesterday led to some doubts about the prospect of rapid rate cuts from the Fed,” wrote Deutsche Bank analyst Jim Reid in a research note.
Chicago Fed President Austan Goolsbee signaled his opposition to a rapid series of rate cuts in an interview with the Financial Times on Wednesday. That flies in the face of pressure from the White House for further reductions, with Treasury Secretary Scott Bessent calling for the end of cuts equating to 100-to-150 basis points before the end of the year in an interview on Fox Business on Wednesday morning.
The yield on the benchmark 10-year Treasury note stood at 4.151% early Thursday, largely unchanged from the previous day, having bounced off lows of close to 4% earlier in the month.
Among individual stocks, Intel is set to be in focus following a report that it is seeking investment from Apple. Costco reports quarterly results on Thursday and the retailer’s earnings will be watched for clues as to consumer spending and sentiment.
