4:25pm: Tech stocks gain
The Nasdaq led the gains on Wednesday, finishing the session 0.6% higher at 17,918 points.
The S&P 500 added 0.4% at 5,620 points while the Dow Jones ended the day unchanged at 40,834 points.
3:15pm: Policymakers support September cut
Stocks remained in positive territory as minutes from the Federal Reserve’s July meeting showed that most participants support a September rate cut.
“The vast majority observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” the summary said.
“Several” policymakers were in favor of moving rates 25 basis points lower at the July meeting on lowering inflation and a rise in joblessness.
Markets are fully pricing in a 25 basis point cut in September.
LPL Financial chief global strategist Quincy Krosby commented that the Fed Minutes pointed to a transition for the central bank.
“The Fed minutes underscore the debate that has ensued between the dual mandate Federal Reserve, with Fed officials debating whether there's enough confirmation to begin the easing cycle against concerns that perhaps inflation hasn't been quelled to the point of ensuring the continuation of the disinflationary path towards price stability,” Krosby said.
“Still, overall the FOMC appears comfortable enough - and concerned enough - that initiating the easing cycle will help ensure that the economic backdrop, particularly the labor market, won't deteriorate at a marked pace.”
He added that should the next payroll report come in softer than modest expectations and unemployment rises, the market and the Fed would need to consider if a 50 basis point reduction is required rather than the 25 basis points currently priced in.
1:05pm: Fed minutes eyed
US stocks edged higher as investors await clues about the Federal Reserve’s rate-cutting intentions from the release of their latest meeting minutes.
The Nasdaq added 0.3% at 17,874 points, the S&P 500 was up 5,613 points, and the Dow Jones added 0.1% at 40,861 points.
Ford shares traded more than 1% higher after the automaker announced it has delayed the production of electric vehicles at its new Tennessee facility and cancelled its planned fully electric three-row SUV due to high battery costs.
Meanwhile, Macy’s tumbled almost 13% after the department store chain slashed its full-year sales forecast as it struggles with curbed consumer spending and a bigger-than-anticipated hit from promotions.
11:00am: Nonfarm payrolls downward revision
US stocks benefitted from a 0.5% US labor department nonfarm payrolls downward revision but then dipped ahead of July FOMC minutes, noted Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"US equity indices initially resumed their upward momentum following a US labor department preliminary estimate of a nonfarm payrolls downward benchmark revision which would cut the March 2024 level of employment by 0.5% or 818,000," Rudolph commented.
"Wednesday evening's publication of the July FOMC minutes or Fed Chair Jerome Powell's speech at the Jackson Hole symposium later this week may reinforce the equity market ascent or poor cold water over it. US mortgage rates falling to a 15-month low have been pretty much ignored by investors."
9.50am: S&P and Nasdaq open higher
Wall Street stocks have opened higher, rebounding after a small drop in the previous session that ended an eight-day winning streak.
The S&P 500 has added 0.2%, led by a 15% gain for Target Corp (NYSE:TGT) and gains for sector peers such as Ross Stores, Dollar Tree and Costco, with the tech-heavy Nasdaq Composite rising by a similar amount.
Target rose after reporting earnings of $2.57 per share beat Street forecasts of $2.19, on revenues of $25.45 billion that also beat consensus estimates.
"We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating margins and growing EPS by more than 40% compared to last year," said Target CEO Brian Cornell.
Revisions to US job numbers and July’s Fed meeting minutes are due later, with analysts saying these will set the tone for how the session goes.
7.35am: Slow start expected for S&P
US stocks are set for another tepid start as investors looked for signals from the Federal Reserve about future interest rate cuts in meeting minutes released later.
Dow Jones and S&P 500 futures are both just above flat and Nasdaq 100 futures are just below.
Overnight, US stocks retreated slightly, with the Nasdaq Composite falling 0.3%, the S&P 500 losing 0.2% and the Dow Jones dropping 0.15%, while the small cap Russell 2000 slumped 1.2% lower.
This ended the S&P's longest run of gains so far this year, an eight-day rally.
"There wasn’t an obvious catalyst, and the index was little changed on the day, but it was always going to be tough to sustain such a long run of gains, and several risks are now coming into focus again," said Deutsche Bank.
"In particular, today will bring the preliminary benchmark revision to US nonfarm payrolls, and given the recent jobs report, there’s quite a bit of concern this will show a weaker labour market than previously thought."
Volatility was heightened slightly, with the VIX index ticking up to 15.88pts to end a run of five consecutive declines.
This is ahead of the Jackson Hole symposium and the release of the Fed's latest meeting minutes, "which could provide insights into the expected September rate cut", said analysts at Saxo.