US Futures Dip as Retail Earnings and Fed Minutes Capture Focus

US stock futures experienced a slight decline on Wednesday as investors analyzed a series of retail earnings reports and braced for the release of minutes from the Federal Reserve’s July policy meeting. These minutes are anticipated to provide insight into the central bank’s future interest rate strategy. Futures linked to the S&P 500 fell approximately 0.2%, while Nasdaq-100 futures dropped 0.3%. The Dow Jones Industrial Average futures remained near the flatline.

Retail stocks dominated the spotlight. Target saw a significant decline, plummeting more than 9% in premarket trading after revealing another quarterly drop in sales and announcing that CEO Brian Cornell would step down in February. In contrast, Lowe’s shares rose over 3% after exceeding quarterly earnings estimates and announcing an $8.8 billion acquisition of Foundation Building Materials. Similarly, Estée Lauder shares fell 7% as its fiscal 2026 profit guidance fell short of Wall Street expectations, largely due to tariff-related challenges.

The mixed retail updates followed a turbulent trading session on Tuesday, where the Dow achieved an intraday record, buoyed by Home Depot‘s positive results. Meanwhile, the S&P 500 and Nasdaq closed lower, impacted by weakness in technology stocks.

Investors are keenly awaiting the Federal Reserve’s July meeting minutes, which are scheduled for release later today. At the last meeting, policymakers opted to maintain current interest rates. Notably, dissent from two Fed governors—Christopher Waller and Michelle Bowman—marked the first dual dissent in over three decades. Current market expectations suggest an 85% probability of a rate cut in September, as traders look to Chair Jerome Powell‘s speech at the upcoming Jackson Hole Economic Symposium for further direction.

Andrzej Skiba, head of BlueBay U.S. Fixed Income at RBC Global Asset Management, commented, “While there are some hot spots in this month’s inflation reading, it’s probably not enough to deter the doves on the committee.”

In corporate news, Hertz shares surged nearly 10% following the announcement of a partnership with Amazon Autos to sell pre-owned vehicles through the e-commerce platform. Conversely, semiconductor stocks faced pressure after reports indicated that Washington is considering acquiring equity stakes in chipmakers like Intel to fund initiatives under the CHIPS Act.

Asian Markets Show Mixed Performance

Across Asia, stock markets closed with mixed results. Japan’s Nikkei 225 fell 0.3%, as technology and semiconductor sectors faced downward pressure. In contrast, Hong Kong’s Hang Seng managed a modest gain of 0.1%, supported by strength in consumer and property stocks.

Mainland Chinese indices ended the day largely unchanged as investors processed policy signals from Beijing ahead of key data releases. South Korea’s Kospi declined 0.2%, while Australia’s S&P/ASX 200 closed 0.4% higher, driven by gains in mining and energy sectors.

As the markets navigate through various earnings reports and central bank signals, the sentiment remains cautious yet dynamic, reflecting a complex economic landscape.