US pre-open: Futures slip as investors digest cautious Fed minutes
By Iain Gilbert
Date: Wednesday 31 Dec 2025
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday, but remained on track to close out both December and 2025 higher.
As of 1020 GMT, Dow Jones futures were down 0.14%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.27% and 0.41% softer, respectively.
The Dow closed 98.47 points lower in 2025's penultimate session, extending losses recorded in the previous session, as minutes from the latest Federal Open Market Committee meeting suggested that policymakers would err on the side of caution when it comes to cutting interest rates in early 2026.
The Federal Reserve cut rates by 25 basis points in December, taking total reductions for 2025 to 75 basis points. The decision marked a shift from the previous two cuts, which were aimed at easing inflation pressures, with the central bank opting to lower rates as part of an effort to support a softening labour market. However, the publication painted a picture of a divided Fed, with the decision said to be "finely balanced", with some raising concerns that the fight against inflation was not yet over.
With the blue-chip Dow Jones closing lower for a third consecutive session, recent declines have started to raise some concern among investors, given that the final five sessions of the year and the first two of the next have typically been a seasonally strong period, often dubbed the 'Santa Claus rally', that usually give equities a final lift into year‑end.
With 2025 about to draw to a close, artificial intelligence remained the dominant market driver throughout the year, but the theme showed signs of splintering as the rally broadened into other sectors and performance among the so‑called 'Magnificent Seven' began to diverge. Alphabet emerged as the standout among the megacaps, up more than 65% over the last twelve months, as investors backed the search giant in its push to compete more aggressively with OpenAI.
On the macro front, weekly jobless claims numbers from the Labor Department were slated for release at 1330 GMT.
No major corporate earnings were slated for release on Wednesday.
Reporting by Iain Gilbert at Sharecast.com
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