S&P 500 futures slipped 0.3% on Wednesday as traders waited for the August PCE data, the Fed’s preferred inflation gauge. Dow futures were barely moved, and Nasdaq‑100 futures eased 0.2%.
Treasury yields edged up again after a dip the previous day, with the 30‑year yield touching 4.45%—its highest since June 2002—and the 10‑year hovering at 5.30%, a new 2007 peak. The climb raises borrowing costs and makes bonds more enticing, pressuring equity valuations.
FedWatch on the CME Group now shows a 49% probability of a 25‑basis‑point hike at the next FOMC meeting, down from 71% earlier in the week. The shift reflects the softer inflation outlook and the market’s recalibration of the Fed’s stance.
European indices were largely flat, with the Stoxx 600 up 0.1% and the FTSE 100 and FTSE MIB rising 0.76% each. In Asia, Nikkei 225 gained 1.94% while the South Korean Kospi slipped 0.48%. Australian S&P/ASX 200 rose 0.92%.
The next key event is the August PCE release, expected to show a 0.3% monthly rise and a 3.7% annual rate. Market participants will gauge whether the Fed will pause or moderate its rate‑hike pace in the coming weeks.