U.S. Futures Dip in Pre-Market, May WTI and June Brent Crude Prices Edge Higher

U.S. index futures are slightly down in pre-market trading this Wednesday, reflecting the continuation of a challenging start to the second quarter of 2024.

At 06:27 AM, Dow Jones futures (DOWI:DJI) fell 35 points, or 0.09%. S&P 500 futures were down 0.21%, and Nasdaq-100 futures lost 0.34%. The yield on 10-year Treasury notes was at 4.367%.

In the commodities market, West Texas Intermediate crude oil for May rose 0.36% to $85.46 per barrel. Brent crude oil for June was up 0.43%, close to $89.30 per barrel. Iron ore traded on the Dalian exchange fell 2.54% to $103.51 per metric ton.

On Wednesday, the economic agenda highlights important U.S. indicators, starting with the ADP employment report at 8:15 AM. This will be followed by the release of the March Services PMI by S&P Global at 09:45 AM and the ISM Services Index at 10:00 AM. The DoE’s update on oil inventories is also awaited at 10:30 AM. At 12:10 PM, a speech by Fed Chairman Jerome Powell is on the radar.

Asian markets closed lower, influenced by Wall Street’s poor performance, despite the Chinese services PMI meeting expectations. Concerns about U.S. interest rates overshadowed the positive data, and Chinese markets are gearing up for a brief hiatus. The Shanghai SE in China fell 0.18%, the Nikkei in Japan was down 0.97%, the Hang Seng Index in Hong Kong retreated 1.22%, the Kospi in South Korea decreased by 1.68%, and the ASX 200 in Australia closed down 1.34%.

Most European markets are trending upwards, driven by the latest Eurozone inflation data. In March, inflation in the 20-country bloc dropped to 2.4%, according to preliminary data, defying economists’ expectations, which had anticipated the rate to hold at 2.6%, as surveyed by Reuters.

After a volatile opening session, U.S. stocks ended Tuesday lower, with the Dow Jones and S&P 500 moving away from recent highs. Uncertainty over interest rates, influenced by mixed economic data, contributed to the decline. The Dow Jones retreated by 1.00%, while the S&P 500 and Nasdaq saw losses of 0.72% and 0.95%, respectively, reflecting investor caution ahead of significant economic announcements expected for the week.

In the earnings front, companies scheduled to present financial reports before the market opens include Acuity Brands (NYSE:AYI), Icecure Medical (NASDAQ:ICCM), BiomX (AMEX:PHGE). After the market closes, financial numbers from BlackBerry (NYSE:BB), Levi Strauss (NYSE:LEVI), Simulations Plus (NASDAQ:SLP), Sportsman’s Warehouse (NASDAQ:SPWH), and Resources Connection (NASDAQ:RGP) are awaited.