Wall Street futures mixed ahead of Warsh’s first Fed decision

Wall Street futures were mixed Wednesday as investors awaited Kevin Warsh’s first Federal Reserve decision and press conference. S&P 500 futures rose about 0.1% and Nasdaq 100 contracts climbed roughly 0.6% in premarket trading, while Dow futures were little changed. Semiconductor stocks led early gains, with Broadcom, Micron, AMD and Intel up between about 1.8% and 3.8%, lifting Nasdaq futures. SpaceX shares rose after overtaking Amazon to become the fifth most valuable publicly traded company on Tuesday.

The Fed is widely expected to keep its benchmark range at 3.50% to 3.75%. Attention centers on Warsh’s remarks at the press conference and the Fed’s rate projections, which investors will use to assess the committee’s view of inflation and growth. CME FedWatch assigns a meaningful probability of a rate increase in December.

May retail sales, due at 8:30 a.m. ET, will give a new read on U.S. consumer spending. A stronger-than-expected report could raise expectations for growth and inflation, while a softer reading could indicate that higher borrowing costs and earlier energy shocks are restraining demand.

Brent crude traded near $79 a barrel, close to a three-month low, after an interim U.S.-Iran framework proposal that could allow more Iranian oil back into global markets and reduce shipping risks through the Strait of Hormuz. Lower crude prices have coincided with a drop in inflation expectations and a recovery in bond yields.

On Tuesday the Nasdaq fell 1.15% and the S&P 500 lost 0.57%, while the Dow rose 0.64% to a second straight record close. Market leadership remained concentrated in large-cap technology. Traders will monitor whether the rally broadens beyond a narrow group of mega-cap names and how chip and other cyclical sectors perform if the Fed signals a change in policy.