(Reuters) – U.S. stock indexes fell on Wednesday as investors awaited a slew of economic data this week, including producer prices and retail sales, for clues on the Federal Reserve's rate-cutting path. Futures prices slumped.
The benchmark S&P 500 hit a new all-time high on Tuesday as Oracle shares soared and somewhat upbeat consumer price data failed to dampen investors' expectations for interest rate cuts in the coming months.
Traders currently believe there is a 66% chance the first rate cut will occur in June, according to the CME FedWatch tool. Starting in March 2022, the Federal Reserve will raise interest rates by 525 basis points, to the current range of 5.25% to 5.50%.
“Despite the tumultuous February CPI data across segments, we believe the U.S. economy remains strong and headed for a soft landing,” Mark Hefele, chief investment officer at UBS Global Wealth Management, said in a note. Stated.
Later this week, economic data including February producer price data on Thursday could provide further insight into inflation in the world's largest economy.
As of 5 a.m. ET, the Dow e-mini and S&P 500 e-mini were unchanged, and the Nasdaq 100 e-mini was down 16.25 points, or 0.09%.
Some market participants believe the relentless rally in the U.S. stock market is ready for a break, although it remains unclear whether stocks are in a bubble or a strong bull market.
Most mega-growth and tech stocks were modestly lower in premarket trading.
AI giant Nvidia rose 0.8%, following a 7.1% rise in the previous session.
Intel fell 1.3% after reports that the Pentagon was backing away from plans to spend up to $2.5 billion in chip subsidies for the company.
GE Healthcare Technologies fell 3.6% as General Electric plans to reduce its stake in the medical device company.
(Reporting by Bhansali Mayur Kamdar in Bengaluru; Editing by Pooja Desai)