US Futures Dip as Retail Earnings and Fed Minutes Capture Attention

US stock futures experienced a slight decline on Wednesday as investors processed mixed retail earnings and awaited the release of minutes from the Federal Reserve’s July policy meeting. Futures linked to the S&P 500 dipped approximately 0.2%, while Nasdaq-100 futures fell by 0.3%. The Dow Jones Industrial Average futures remained close to the flatline.

Retail earnings dominated investor focus. Target saw its shares plummet over 9% in premarket trading after announcing a continued decline in quarterly sales and the impending departure of long-serving CEO Brian Cornell in February. In contrast, Lowe’s shares rose more than 3% following the company’s positive quarterly earnings report and the announcement of an $8.8 billion acquisition of Foundation Building Materials. Additionally, Estée Lauder shares fell by 7% after the company projected fiscal 2026 profits below Wall Street expectations, citing challenges related to tariffs.

The retail updates followed a volatile trading session on Tuesday, where the Dow achieved an intraday record largely due to strong results from Home Depot. Despite this, both the S&P 500 and Nasdaq closed lower, weighed down by weakness in technology stocks.

Investors are also keenly awaiting the Federal Reserve’s meeting minutes, which are set to be released later in the day. While policymakers maintained interest rates, the meeting marked the first occasion in over three decades where two Federal Reserve governors, Christopher Waller and Michelle Bowman, expressed dissent. Current market expectations indicate an 85% probability of a rate cut in September, according to data from CME FedWatch. In addition, Jerome Powell, the Fed Chair, is scheduled to speak at the Jackson Hole Economic Symposium on Friday, which is anticipated to provide further insights.

A notable comment from Andrzej Skiba, head of BlueBay U.S. Fixed Income at RBC Global Asset Management, indicated that while certain areas of this month’s inflation data may be concerning, they are unlikely to sway the more dovish members of the Federal Reserve.

In corporate developments, Hertz shares surged nearly 10% after announcing a partnership with Amazon Autos to facilitate the sale of pre-owned vehicles through the e-commerce platform. Meanwhile, semiconductor stocks faced downward pressure following reports that the US government is considering acquiring equity stakes in companies such as Intel in exchange for funding under the CHIPS Act.

Asian Markets Show Mixed Results

Across Asia, stock markets closed with mixed results. Japan’s Nikkei 225 fell 0.3%, influenced by declines in technology and semiconductor sectors. Conversely, Hong Kong’s Hang Seng managed a slight gain of 0.1%, supported by strong performances in consumer and property stocks. Mainland Chinese indices largely remained flat as investors analyzed policy signals from Beijing in anticipation of key data releases.

South Korea’s Kospi index dropped 0.2%, while Australia’s S&P/ASX 200 ended the day 0.4% higher, buoyed by gains in the mining and energy sectors.

As market participants await further developments, the economic landscape remains dynamic, with significant implications for both investors and consumers alike.