US equity futures edged lower on Wednesday ahead of the release of minutes from the Federal Reserve’s September meeting, while investors also assessed developments involving SpaceX and Constellation Brands and awaited results from Levi Strauss.
At 06:56 GMT, Dow futures were down 108 points, or 0.2%, while S&P 500 futures were broadly flat. Nasdaq 100 futures declined 28 points, or 0.1%.
Wall Street’s main indices finished slightly higher in the previous session but closed below their earlier intraday levels.
Government bond markets also remained in focus following recent selling in US and French debt. Benchmark 10-year yields moved higher, while Vital Knowledge analysts questioned whether “this asset class can sustain a material rally”, citing artificial intelligence investment and an expected “tidal wave” of debt issuance.
Oil prices initially declined before reversing course as markets continued to assess crude flows from the Middle East, shipping costs and supplies of refined products.
Fed September Meeting Minutes in Focus
The Federal Reserve is scheduled to publish minutes from its September policy meeting, when it increased interest rates for the first time since 2023.
Projections released alongside that decision indicated that further rate increases could follow before the end of the year as the central bank responds to inflation remaining above its 2% target.
Expectations for another increase at the Fed’s next meeting have since moderated. Comments from Fed officials have indicated a more cautious approach, while recent employment figures were weaker than expected.
Investors will examine the minutes for additional information about policymakers’ assessments of inflation, employment and the appropriate path for interest rates.
SpaceX Reportedly Plans $40 Billion Financing for Nvidia Chips
SpaceX (NASDAQ:SPCX) is seeking approximately $40 billion of financing to purchase Nvidia (NASDAQ:NVDA) chips, the Financial Times reported, citing people familiar with the plans.
According to the report, the financing could comprise around $10 billion of bank loans and $30 billion of investment-grade debt.
Apollo Global (NYSE:APO) is expected to lead the transaction and assist in marketing the debt. Pimco is also reportedly among a small group of potential lenders.
The proposed financing would fund purchases of computing equipment for artificial intelligence infrastructure. Elon Musk has previously said SpaceX plans to use Nvidia chips exclusively in its Colossus data centres.
Constellation Brands Falls Despite Earnings Beat
Constellation Brands (NYSE:STZ) shares moved lower in after-hours trading despite second-quarter sales and adjusted earnings exceeding market forecasts.
Net sales increased 6% to $2.63 billion in the quarter ended August 31, while adjusted earnings per share were $3.74. Both figures exceeded Wall Street expectations based on LSEG data cited by Reuters.
Beer depletions declined 0.6%, which TD Cowen analysts said was 70 basis points below expectations.
The company maintained its full-year financial guidance. TD Cowen said the outlook implies second-half sales “will be down [roughly] 2% at the midpoint.”
Constellation also completed its acquisition of vodka-based ready-to-drink beverage company SpikedAde. It will initially pay $75 million, with potential additional payments of up to $278 million over five years.
Levi Strauss Earnings Scheduled After Closing Bell
Levi Strauss (NYSE:LEVI) is scheduled to release its results after the market closes.
The shares have declined more than 1% since the start of the year, despite the company raising its full-year profit forecast in July.
Chief Executive Michelle Gass said at the time that Levi Strauss was seeking to address a “sizable premium segment” it had not previously reached. The company has also expanded its direct-to-consumer business and introduced looser-fitting products aimed at younger customers.
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