US stock futures flat as Powell talks down rate cut hopes; CPI awaited
Investing.com-- U.S. stock index futures moved little on Tuesday evening after Federal Reserve Chair Jerome Powell further downplayed expectations for interest rate cuts, while focus turned to key upcoming inflation data.
Futures steadied after a mixed session on Wall Street, where some buying into economically sensitive sectors boosted the Dow. But technology stocks mostly fell, with Tesla losing more than 6% amid a storm of negative catalysts.
Investors were still digesting President Donald Trump’s imposition of higher trade tariffs this week, which are expected to potentially underpin inflation and weigh on economic growth in the coming months. Trump has signaled his intent to impose even more tariffs.
S&P 500 Futures steadied at 6,093.75 points, while Nasdaq 100 Futures rose 0.1% to 21,815.0 points by 18:47 ET (23:47 GMT). Dow Jones Futures were flat at 44,720.0 points.
Powell flags no hurry to cut rates; inflation awaited
Powell told the Senate Banking Committee on Tuesday that the Fed was in no hurry to cut interest rates, given that it had already trimmed rates by 1% in 2024, and that the economy remained strong.
His comments echoed those from the January policy meeting, where the central bank kept rates steady and signaled little intent to cut rates further in the near-term.
The Fed Chair is set to testify before Congress on Wednesday, where he is likely to be questioned about the impact of Trump’s policies on the economy and inflation. Several Fed members have warned that Trump’s tariffs could underpin inflation.
Before Powell’s testimony, consumer price index inflation data for January is also due on Wednesday. Goldman Sachs analysts said they expect core CPI to read slightly above consensus, indicating that inflation remained sticky.
Wall Street muted, Tesla slides on storm of headwinds
Wall Street indexes moved in a tight range on Tuesday, although technology stocks lost ground amid weak earnings from Super Micro Computer Inc (NASDAQ: SMCI ). But the stock rallied over 8% in aftermarket trade, after the server maker said it will meet a Nasdaq deadline to file its long pending annual and quarterly reports.
Tesla Inc (NASDAQ: TSLA ) was a major weight on tech stocks, losing 6.3% during Tuesday’s session as investors fretted over a slew of headwinds for the stock, including heightened competition from Chinese EV makers, as well as concerns that CEO Elon Musk’s focus may be too diluted after he submitted a bid for OpenAI.
Tech stocks have clocked wild swings after a rout in late-January, as the release of China’s DeepSeek R1 artificial intelligence sparked doubts over AI demand.
The S&P 500 ended flat at 6,068.59 points, while the NASDAQ Composite fell 0.4% to 19,643.86 points. The Dow Jones Industrial Average rose 0.3% to 44,593.81 points.