Investors price in an 85.5% chance of a December Fed rate hike, pressuring equities after Tuesday’s tech-led selloff.
Dow Jones futures dipped 0.13% to near 52,000 in European trading Wednesday, reflecting caution over Federal Reserve policy. S&P 500 and Nasdaq 100 futures rose 0.13% and 0.36%, respectively, recovering slightly after Tuesday’s losses.
Wall Street closed lower Tuesday, with the Dow down 0.09%, the S&P 500 off 1.44%, and the Nasdaq Composite sliding 2.21%. Semiconductor and memory chip stocks led declines as concerns grew over AI infrastructure spending returns. The CME FedWatch tool now shows an 85.5% probability of a December rate hike, up from 61% pre-FOMC.
Micron Technology’s upcoming earnings report is in focus, with its shares up over 4% premarket. Alphabet gained after S&P Global announced its addition to the Dow, effective next Monday.