Fed doubts dominate as futures contracts down By Reuters

By Akanksha Rana

(Reuters) – The main Wall Street markets are expected to come down on Thursday, the trend of the previous session suggesting the Federal Reserve 's skeptical attitude towards a new round of falling interest rates. Interest has neutralized some more optimistic signs from US retailers.

The minutes of the US Central Bank meeting on July 30-31 showed that policymakers were deeply divided over their rate cuts by a quarter of a point, but wanted to make it known that this measure was not not on track for further reductions.

While traders continue to bet on a further cut in the Fed's spending in September, the money markets have now spread a half-point, and the speech of Fed Chairman Jerome Powell at an annual meeting Friday's Jackson Hole could prove crucial for short-term sentiment. .

As markets are about to fall this month after two weeks of liquidation driven by worries over the US-China trade war and its impact on global and US growth, Powell's signals for the economy this week have been more optimistic.

Strong results for retailers Target (N :), Lowe (N 🙂 and Nordstrom (N 🙂 Wednesday were completed on Thursday with more comprehensive surveys than expected from purchasing managers in Europe. US surveys should be sent later, as well as weekly unemployment claims.

President Trump continues to publicly call on the Fed to cut rates, but many analysts say the US economy is way farther from the recession than some of its European competitors or the bond market has sometimes suggested. month.

"Without looking like a record, President Powell is absolutely disappointed (he's expecting more rate cuts)," said Jeffrey Halley, senior market analyst at OANDA's online trading platform.

"It's hard to see Powell announce or involve a new round of aggressive easing in isolation while just a month ago, the FOMC was also very divided."

Among the shares, the shares of Nordstrom Inc before the market, its results rose 9.3%, after the bell joined Wednesday Target and Lowe beating earnings estimates of Wall Street.

At 6:48, ET, down 36 points, or 0.14%. The S & P 500 minis lost 4.5 points, or 0.15%, and 21.5 points, or 0.28%.

Trade tensions, which dampened the rise in inventories earlier this month, continued to moderate as China said Thursday that it hoped the US would end its erroneous tariff action and that all new rate would lead to escalation.

The S & P 500 () benchmark fell 3.4% from its record high in late July.