As Wall Street opened Wednesday, futures indicated a cautious downturn as investors distanced themselves from technology stocks while anticipating critical data that could shape the trajectory of the U.S. economy. The Job Openings and Labor Turnover Survey (JOLTS) for July is set to be released at 10 am ET in Washington, serving as a significant indicator to gauge the robustness of the domestic labor markets.
In the futures market, the S&P 500 registered a decrease of 0.4%, the Nasdaq experienced a decline of 0.7%, and the Dow Jones Industrial Average fell by 0.20%. Furthermore, global commodity prices saw a dip overnight, with U.S. crude benchmarks dropping below $70 per barrel; however, they managed to recover slightly during morning trading.
Asian stock exchanges faced significant pressures, primarily driven by losses in the technology sector. The Nikkei 225 index dropped by 4.2%, while the Taiwan TWSE index fell back by 4.5%. European markets mirrored this sentiment, showing solid declines as midday approached.The tech sector was notably affected, with Nvidia Corporation (NVDA) reporting a pre-bell drop of 1.6%.
This decline followed a substantial 9.5% decrease on Tuesday, amidst growing concerns regarding the valuation of the AI-chipmaker, which has recently been served an antitrust subpoena by the Department of Justice according to various media outlets. Similarly, Hormel Foods Corporation (HRL) faced pressures, declining by 5% before the bell, following the release of its fiscal third-quarter earnings.
Although these results beat the targeted estimates, the company also adjusted its full-year guidance downward. Dollar Tree Inc. (DLTR) experienced a more pronounced drop of 11% pre-bell after reporting fiscal third-quarter earnings, revenue, and same-store sales that fell short of expectations, prompting the company to lower its guidance early Wednesday.
Additionally, Dick's Sporting Goods (DKS) is scheduled to disclose its earnings figures prior to the market open. In terms of economic markers, besides the upcoming JOLTS data, the July international trade in goods and services will be published at 8:30 am ET, followed by the July factory orders report at 10 am ET.
The Federal Reserve's Beige Book, which consolidates business and economic insights from the Fed's twelve regional banks, will also be released at 2 pm ET. As activity heats up in pre-market trading, Bitcoin is quoted at $56,820, while West Texas Intermediate crude oil gains a bit of ground at $70.94 a barrel, and the yield on 10-year U.S.
Treasuries remains at 3.82%. Spot gold prices rest at $2,488 per ounce, indicating a slight uptick amidst market fluctuations. Additionally, notable indices include $US30 and $US500, reflecting ongoing trends in stock performance and investor sentiment..