(Bloomberg) — Stock futures fell as traders awaited the latest Federal Reserve minutes to gauge the direction of monetary policy.
S&P 500 contracts signaled the benchmark gauge will drop for a second day. Target Corp. sank in premarket trading as the retailer’s sales growth slowed, hinting that the heightened demand ushered in by the pandemic may be waning. Lowe’s Cos. climbed after the home-improvement giant raised its full-year forecast. Robinhood Markets Inc., the pioneer of commission-free trading apps, will report earnings for the first time since going public.
The Fed is due to publish minutes of its July meeting at 2 p.m. Washington time, with debate growing on the timing for tapering bond purchases. Chair Jerome Powell said Tuesday the pandemic continues to cast a shadow on economic activity. Fed Bank of St. Louis President James Bullard is set to speak later Wednesday. Next week’s Jackson Hole symposium remains the most likely forum for a major revelation on the future direction of monetary policy.
“More and more Fed officials have tilted hawkish, and so the minutes will be of great interest ahead of the Jackson Hole symposium next week,” wrote Win Thin, a strategist at Brown Brothers Harriman. “We believe the ranks of the hawks will continue to grow.”
On the economic front, data showed that U.S. housing starts declined more than expected in July, underscoring how lingering shortages of materials and workers continue to restrain activity.
Here are some events to watch this week:
Bank Indonesia rate decision and Governor Perry Warjiyo briefing ThursdayU.S. initial jobless claims, leading index Thursday
Some of the main moves in markets:
Stocks
Futures on the S&P 500 fell 0.2% as of 9:16 a.m. New York timeFutures on the Nasdaq 100 fell 0.2%Futures on the Dow Jones Industrial Average fell 0.3%The Stoxx Europe 600 was little changedThe MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1714The British pound rose 0.2% to $1.3764The Japanese yen fell 0.2% to 109.83 per dollar
Bonds
The yield on 10-year Treasuries advanced one basis point to 1.28%Germany’s 10-year yield declined one basis point to -0.48%Britain’s 10-year yield declined one basis point to 0.55%
Commodities
West Texas Intermediate crude rose 0.5% to $66.95 a barrelGold futures rose 0.2% to $1,790.80 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
Read More: Stock Futures Drop as Investors Await Fed Minutes: Markets Wrap