Wall Street futures decline up to 1.3% as Fed's rate cut outlook remains clouded

Wall Street futures indicated weak opening for the US markets. 

US index futures were lower by up to 1.3 percent a short while ago on November 4, as uncertainty over Federal Reserve’s rate cut outlook continued to weigh on investor sentiment.

Divergent remarks by central bank officials have added to the unease, along with the suspension of key US economic data releases due to the ongoing federal government shutdown further clouding the picture for investors.

Fed Governor Stephen Miran reiterated his support for deeper rate cuts, while Chicago Fed President Austan Goolsbee has cautioned against further reductions, as inflation remains well-above the central bank’s 2 percent target.

The Fed had reduced interest rates last week, but Chair Jerome Powell signalled that the move could be the last cut for this year.

At around 5 pm IST, Nasdaq 100 futures were down 1.3 percent, S&P 500 futures fell 1 percent, and Dow Jones Industrial Average futures slipped 0.62 percent.

Weak trends on Wall Street also weighed on global markets. In Europe, the pan-European STOXX 600 declined 1.1 percent, Germany’s DAX was down 1.4 percent, and France’s CAC 40 lost 1.2 percent.

In Asia, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index all closed lower.

Back home, the Sensex fell 519.34 points or 0.62 percent to close at 83,459.15. During the day, it dropped 565.72 points or 0.67 percent to 83,412.77. The broader Nifty declined 165.70 points or 0.64 percent to 25,597.65.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.