Stock Futures Tumble as Investors Brace for Fed Minutes That Could Move Global Markets

TLDR

Table of Contents

Stock futures fell Wednesday morning continuing tech selloff from previous session, with Target earnings disappointing and shares dropping 10% premarket
Federal Reserve minutes from July meeting will be released today ahead of Chair Jerome Powell’s Jackson Hole speech on Friday
Market expects quarter-point rate cut in September but remains split on whether Fed will cut by 0.25 or 0.5 points by year end
Target reported profit beat but maintained guidance while facing tariff pressures and consumer weakness under new CEO Michael Fiddelke
Lowe’s stock jumped after raising 2025 forecast as sales returned to growth, contrasting with Home Depot’s earlier warning about interest rate impacts

Stock market futures declined Wednesday morning as investors processed disappointing retail earnings and prepared for key Federal Reserve communications. The tech-heavy markets continued their retreat from Tuesday’s selloff.

Dow Jones Industrial Average futures fell 105 points or 0.2% before market open. S&P 500 futures dropped 0.3% while Nasdaq 100 futures declined 0.4% as technology stocks remained under pressure.

Target shares plunged 10% in premarket trading despite beating profit expectations. The retailer maintained its full-year guidance but faces mounting challenges from tariff pressures and weakened consumer spending under newly announced CEO Michael Fiddelke.

Target Corporation, $TGT, Q2-25 Results:
📊 Adj. EPS: $2.05 🔴
💰 Revenue: $25.2B 🟢
📈 Net Income: $935M
🔎 Digital sales grew 4.3%, while non-merchandise sales rose 14.2%, helping offset softness in in-store traffic and merchandise demand. pic.twitter.com/a23QgO4RBJ
— EarningsTime (@Earnings_Time) August 20, 2025

The company’s latest quarter reflected the difficult retail environment many chains are navigating. Tariff impacts and consumer belt-tightening have created headwinds for mass market retailers across the sector.

Lowe’s provided a bright spot in retail earnings by raising its 2025 forecast. The home improvement chain saw sales return to growth, offering relief after competitor Home Depot warned about interest rate effects on housing activity.

Home Depot had previously cautioned that higher rates are discouraging Americans from moving homes. This housing market slowdown has ripple effects across home improvement and retail sectors.

Fed Minutes Set Stage for Jackson Hole Speech

Wednesday’s release of Federal Reserve meeting minutes from July will offer insight into policymaker thinking. Investors seek clues about the central bank’s approach to potential interest rate cuts in September.

At the July meeting, Fed officials held rates steady and emphasized no decisions had been made about September policy moves. The minutes will reveal internal discussions about balancing labor market weakness against persistent inflation pressures.

Market consensus points to a quarter-point rate cut at the September 17 meeting. However, traders remain divided on whether the Fed will implement additional cuts totaling 0.25 or 0.5 points by year end.

Fed Chair Jerome Powell’s speech at Jackson Hole on Friday represents the week’s main event for markets. His remarks could provide direction on the central bank’s policy path ahead.

Technology Stocks Continue Retreat

Tuesday’s technology selloff continued weighing on market sentiment Wednesday morning. Stocks like Palantir Technologies and Nvidia led the decline as investors rotated away from AI-focused companies.

The tech retreat reflects growing questions about artificial intelligence investment returns. Investors have begun moving funds from previously high-flying technology stocks into lagging sectors.

This rotation has created volatility across major indexes as technology companies had driven much of the market’s recent gains. The Nasdaq 100’s relative weakness compared to other indexes reflects this sector-specific pressure.

Treasury yields showed mixed movement with the 10-year note slipping to 4.31% from 4.347% the previous day. The two-year yield held steady near 3.769% as investors awaited Fed guidance.

West Texas Intermediate crude oil gained 1% to $63 per barrel as traders monitored geopolitical developments. President Trump’s efforts to arrange meetings between Russian and Ukrainian leaders added uncertainty to energy markets.

Walmart earnings on Thursday will provide another key test for retail sector sentiment and consumer spending trends.

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