US pre-open: Futures flat as traders continue to hold out for Fed's Jackson Hole summit
By Iain Gilbert
Date: Wednesday 25 Aug 2021
(Sharecast News) - Wall Street futures were little changed ahead of the bell on Wednesday after the S&P 500 and Nasdaq closed at record highs ahead of Federal Reserve's Jackson Hole summit.
As of 1225 BST, Dow Jones futures were up 0.04% and S&P 500 futures were 0.01% firmer, while Nasdaq-100 futures had the index opening 0.03% weaker.
The Dow Jones closed 30.55 points higher on Tuesday as the Food and Drug Adminstration's full approval of Pfizer and BioNTech's Covid-19 vaccine gave sentiment a boost.
Trading was somewhat muted before the open on Wednesday, with market participants continuing to hold out for the beginning of tomorrow's likely market moving symposium in Jackson Hole, Wyoming. Investors will have to wait to see whether or not central bankers will outline their plans for tapering monetary stimulus after already having started talks as to how to pull back on its $120.0bn a month bond-buying program by the end of 2021.
Traders were also digesting news that Securities and Exchange Commission chairman Gary Gensler had pledged to strictly enforce a three-year deadline that will require Chinese companies to allow inspections of financial audits or risk or being delisted from the New York Stock Exchange and Nasdaq as soon as 2024.
AvaTrade's Naeem Aslam said: "Futures in the United States and Europe are flat today, following yesterday's bullish rally that pushed the Dow and Nasdaq to record closes. Investors are optimistic about the US economic recovery, especially now that the FDA has fully approved Pfizer's vaccine, and more people will be willing to take the vaccine shot.
"Furthermore, traders have been injecting capital into Chinese shares as they are gaining a better understanding of China's regulatory outlook. This shift toward Chinese stocks aided Nasdaq's rise as investors took advantage of the opportunity to buy shares of Chinese companies that had suffered massive losses in recent months."
On the macro front, US mortgage applications increased 1.6% in the week ended 20 August, rebounding from a 3.9% fall in the previous week, according to the Mortgage Bankers Association. Applications to purchase a home surged 3% and those for refinancing were up 0.9% as the average fixed 30-year mortgage rate dropped three basis points to 3.03% - easing from a four-week high in the previous week.
Still to come, July's durable goods orders report will be released at 1330 BST.
In the corporate space, Box and Salesforce.com will be report their latest quarterly earnings figures after the close.
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