US stocks were setting up for more losses on Wednesday as investors braced for a speech by Federal Reserve Chair Jerome Powell amid concerns about prolonged higher interest rates.
S&P 500 futures slipped 0.2%, while Dow Jones Industrial Average futures held just below the flatline. Nasdaq 100 contracts led declines, down almost 0.4%, following a day of losses for major gauges.
Investors have shifted their expectations for Fed rate cuts, with hopes for three cuts diminishing as robust economic data rolls in. Powell’s speech later in the day will be closely watched for hints on the Fed’s next move.
Meanwhile, a bitter proxy battle between Disney and activist investor Nelson Peltz is coming to a head, with results of a shareholder vote expected later in the day. Disney appears to have secured enough support to fend off Peltz’s board shake-up proposal.
In single stock moves, Intel shares fell around 5% in premarket trading after reporting sharper operating losses in its foundry business. Rival TSMC also faced challenges after a major earthquake in Taiwan disrupted chipmaking operations.
On another front, JP Morgan analyst Ryan Brinkman slashed his price target on Tesla to $115, citing lackluster deliveries and projecting a 30% downside from current levels. The revised target reflects a 33% decline in Tesla’s stock year-to-date.
Intel also made headlines as it disclosed a $7 billion loss in its manufacturing business for 2023, sparking a 4% drop in its shares pre-market. The company’s transition phase and high capital intensity are seen as challenges ahead.
Overall, the market is bracing for more volatility as key events unfold, with investors closely monitoring developments in the tech sector and the broader economic landscape.
