Near-term, new S&P 500 record closes in, Fed says

Investing.com — Wall Street futures pointed lower on Wednesday, after hitting a new high in the previous session. Investors will get a chance to weigh in on comments from Fed Governor Adriana Kugler, who will join a chorus of policymakers delivering statements this week on the central bank’s big interest rate cut last week.

1. Smaller futures

U.S. stock futures fell after the benchmark S&P 500 closed at a second consecutive record high in the previous session.

By 03:26 ET (0726 GMT), the contract was down 12 points, or 0.2 percent, down 96 points, or 0.2 percent, and down 77 points, or 0.4 percent.

Wall Street’s main averages closed in the green, paring gains in other international markets after China announced new stimulus measures aimed at rejuvenating activity in the world’s second-largest economy. U.S.-listed Chinese stocks edged higher, while lithium miners advanced on a rise in metal prices.

However, sentiment was weighed down by a Conference Board report showing that US consumer confidence unexpectedly fell in September on concerns about the health of the labor market.

2. Fed’s Kugler to speak

Federal Reserve Governor Adriana Kugler is due to speak on Wednesday, with markets eager to see if she will become the latest policymaker to comment on last week’s jumbo interest rate cut.

Kugler will deliver a speech at the Harvard Kennedy School at 4:00 PM ET, according to the Fed. Several Fed officials are scheduled to make public statements this week, including Chairman Jerome Powell.

On Tuesday, Fed Governor Michelle Bowman defended her decision to vote against a very large 50-basis-point interest rate cut in favor of a more traditional cut of a quarter of a percentage point, signaling that the major rates of inflation remains “uncomfortably above” the Fed’s stated target level. .

Her position contrasted with other Fed officials earlier this week, who argued the half-point cut was necessary because high rates were putting too much pressure on the economy at a time when inflation appears to be easing and pressures on demand of work are increasing.

3. US Probes SAP, Carahsoft Over Possible Price Fixing – Bloomberg News

The US government is investigating German software firm SAP and product reseller Carahsoft for potentially overburdening government agencies for at least a decade, Bloomberg News reported Wednesday.

The Justice Department is investigating whether business software maker SAP illegally conspired with Carahsoft to set higher prices on sales to the US military and other government agencies, Bloomberg reported, citing federal court filings filed in Baltimore. The investigation has been ongoing since at least 2022.

Carahsoft — a major software vendor — had its Virginia offices raided Tuesday by FBI agents and military investigators.

4. Gold hits a new high

Gold prices were slightly lower after hitting a new record high on Wednesday.

By 3:28 a.m. ET, it was 0.1 percent lower at $2,654.31 an ounce. Earlier, it hit a record high of $2,670.43 an ounce in Asian trade.

The prospect of lower interest rates has been a key support for gold as traders price in a lower opportunity cost to invest in non-yielding assets. Gold also saw a haven demand, triggered by heightened tensions in the Middle East.

This week’s comments from Fed speakers, as well as Friday’s release of the Fed’s preferred inflation gauge, could provide more insight into the path forward for borrowing costs.

5. Oil splashes

Crude oil prices fell on Wednesday as traders reassessed the likely impact of new monetary stimulus from top importer China.

By 03:30 ET, the contract was down 0.5% at $74.08 a barrel, while WTI futures traded 0.7% lower at $71.08 a barrel. barrel.

Both benchmarks rose just under 2 percent on Tuesday after China unveiled its latest barrage of stimulus measures. However, traders noted that more help may be needed to boost the economic outlook for the world’s biggest crude importer, according to Reuters.

Falling U.S. crude inventories provided some support to the market as data from the American Petroleum Institute showed on Tuesday that crude inventories fell by 4.34 million barrels last week. Official numbers from the Energy Information Administration will be out later in the session.