Wall Street was set for another downbeat trading day on Wednesday, as Brexit-related uncertainties continued to spook the market and investors stayed on the sidelines ahead of Federal Reserve minutes.
Futures for the Dow Jones Industrial Average YMU6, -0.62% dropped 97 points, or 0.6%, to 17,665, while those for the S&P 500 index ESU6, -0.67% lost 11.70 points, or 0.6%, to 2,071. Futures for the Nasdaq-100 index NQU6, -0.75% gave up 28.25 points, or 0.6%, to 4,376.25.
“Anxiety over the impact of Brexit and its impact on global growth is once more plaguing the mind-set of traders as a safe haven preference is playing out across asset classes,” Richard Perry, market analyst at Hantec Markets, said in a note.
“With the U.S. 10-year Treasury yield back below 1.400%, pressure is growing on Wall Street once more,” he added.
Yields on 10-year U.S. government paper TMUBMUSD10Y, -2.63% fell to an all-time low of 1.367% on Tuesday and continued to drop on Wednesday to 1.350%. In Japan, the yield on 20-year government bonds turned negative for the first time, in another sign of investors fleeing to safe havens.
Economic news: Investors will hear the latest from the Fed on Wednesday when the minutes from its meeting on June 14-15 come out at 2 p.m. Eastern Time. The minutes are expected to shed light on how concerned the central bank was about the U.S. economy in the wake of the lackluster May jobs report and give an indication of how dovish it’ll be at coming meetings.
Earlier in the day, at 8:30 a.m. Eastern Time, trade data from May are due out. They are forecast to show a $40.2 billion deficit.
The Markit services purchasing managers’ index for June is due at 9:45 a.m. Eastern, followed by the ISM nonmanufacturing reading for the same month at 10 a.m. Eastern. Economists polled by MarketWatch expect the ISM to have risen to 53.4%, from 52.9% in May.