Major U.S. stock futures suggest a modestly lower start on Wednesday as investors react to yesterday’s tech-led selloff.
Target (NYSE:TGT) is leading the pre-market declines, down 10.1%, after reporting a fall in second-quarter sales and announcing COO Michael Fiddelke will succeed CEO Brian Cornell.
Estée Lauder (NYSE:EL) is also under pressure, slipping 6.6% pre-market following a steep fiscal fourth-quarter operating loss and weaker-than-expected guidance for fiscal 2026.
Meanwhile, Lowe’s (NYSE:LOW) is climbing 2.6% after posting better-than-expected second-quarter earnings and raising its full-year revenue outlook, providing a bright spot ahead of the Fed minutes.
Investors are keeping trading activity subdued ahead of the Federal Reserve’s meeting minutes release, which could shed light on the central bank’s future rate policy. The July meeting ended with a split decision to maintain interest rates, leaving markets eager for additional guidance.
Tuesday’s session saw the Nasdaq bear the brunt of the declines, dropping 314.82 points (1.5%) to 21,314.95. The S&P 500 fell 37.78 points (0.6%) to 6,411.37, while the Dow eked out a small gain of 10.45 points, closing at 44,922.27 after reaching an intraday record.
Tech stocks were the main drag, with Nvidia (NASDAQ:NVDA) falling 3.5% amid reports the company is developing a new AI chip for China. On the other hand, Home Depot (NYSE:HD) rallied 3.2%, supported by solid guidance despite slightly weaker second-quarter results.
Looking ahead, investors are also monitoring the Jackson Hole Economic Symposium, which begins Thursday. Fed Chair Jerome Powell is set to speak Friday, and his comments could influence expectations for future rate moves. The CME Group FedWatch Tool currently assigns an 86.9% probability to a quarter-point rate cut in September.
Economic data this week, including weekly jobless claims, existing home sales, and leading indicators, may also provide market-moving insights. On Tuesday, the Commerce Department reported an unexpected surge in new residential construction in July.
Sector performance was mixed. Gold stocks dropped as gold prices fell, dragging the NYSE Arca Gold Bugs Index down 3.0%. Software, semiconductor, networking, and computer hardware stocks also faced declines, hitting the Nasdaq’s tech-heavy index. Conversely, commercial real estate, housing, and transportation sectors saw gains, helping offset some of the market’s losses.
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