Investing.com — U.S. stock index futures moved little in evening trades on Wednesday, with trading volumes expected to remain thin due to the Independence Day holiday.
But Wall Street still hit record highs in short trading on Wednesday as weak data fueled expectations that the Federal Reserve will cut interest rates starting in September.
remained steady at 5,590.50 points, while remaining flat at 39,646.0 points at 7:09 PM ET (23:09 GMT). remained flat at 39,646.0 points.
Hopes for rate cuts pushed the Nasdaq and the S&P 500 to record highs
A slew of weak labor market data prompted traders to increase bets that the Fed would cut rates by 25 basis points in September.
June figures were weaker than expected, while weekly growth was stronger than expected. The data fueled hopes that Friday’s data will signal some cooling in employment, which is a key consideration for the Fed as it cuts rates.
If we follow this idea, the figures increase by 0.5% to 5,537.02 points, while they increase by 0.9% to 18,188.30 points. The index lagged behind and fell by 0.1% to 39,308.0 points.
Investors remained largely focused on mega-cap growth stocks, especially technology, with artificial intelligence hype also playing a role in sentiment.
Stock traders estimate a nearly 66% chance of a 25 basis point cut in September, compared to 59.5% a day ago.
But other signals, especially from the Fed, led to little optimism about rate cuts.
Fed minutes show that officials have no confidence in interest rate cuts
The report, released Wednesday, found that while officials saw the U.S. economy was cooling, they still did not trust the central bank to start cutting interest rates.
Persistent inflation data in recent months also led several policymakers to call for more interest rate hikes, fearing that monetary policy would not be restrictive enough.
The minutes came just a day after Fed Chairman Jerome Powell noted some progress in reducing inflation but warned the central bank needed more confidence before cutting rates.
Several other Fed officials have echoed this idea in recent weeks.
