In a cautiously optimistic tone, US equity futures exhibited notable gains prior to the opening bell on Wednesday, as traders eagerly anticipated the release of the minutes from the latest Federal Reserve meeting, seeking insights into future monetary policy directions. The major indices showed promising movement, with Dow Jones Industrial Average futures increasing by 0.2%, S&P 500 futures up by 0.3%, and Nasdaq futures reflecting a 0.2% rise, indicating an overall positive sentiment in the market. Furthermore, the energy sector showed upward momentum as oil prices experienced a boost.
The front-month global benchmark, North Sea Brent crude, surged 0.3%, reaching $77.44 per barrel, while US West Texas Intermediate crude mirrored this increase, also up 0.3% at $73.39 per barrel. Turning attention to the Federal Open Market Committee (FOMC), market participants are keenly awaiting the release of the meeting minutes from July 30-31, scheduled for 2 PM ET.
During the prior meeting, the FOMC decided to maintain the target range for the federal funds rate at 5.25% to 5.50%. This week, Fed Chair Jerome Powell and other central bank officials will reconvene for the annual economic symposium in Jackson Hole, Wyoming, where discussions surrounding economic strategies and policy outlook are expected to take center stage. Looking across global equity markets, mixed results were observed.
Japan's Nikkei dropped by 0.3%, with Hong Kong's Hang Seng index showing a decline of 0.7%, and China's Shanghai Composite finishing down by 0.4%. In contrast, European indices displayed resilience, as the UK's FTSE 100 closed up by 0.2%, and Germany's DAX index rose by 0.6% during the early afternoon session. In corporate news, shares of Target Corporation soared by 15% in pre-bell trading after the retailer reported a significant increase in fiscal Q2 adjusted earnings and revenue, subsequently raising its fiscal 2024 guidance.
Additionally, Bio-Path Holdings saw its shares climb by 22% following news of a promising phase 1/1b trial outcome for a solid tumor drug candidate, indicating a successful tumor reduction in one patient. On the contrary, the market also witnessed some declines. Macy's faced a 9% drop in its shares after announcing a decrease in fiscal Q4 revenue and revising its fiscal 2024 revenue guidance downward.
Similarly, Aadi Bioscience experienced a retreat of 15% in its share price after revealing plans for job cuts and halting its tumor treatment trial, sparking concerns among investors..