Wall Street futures pull back as markets eye cautious Fed
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Futures lower: Dow 0.62%, S&P 0.33%, Nasdaq 0.05%
June 14 (Reuters) -U.S. stock index futures retreated on Friday, with the S&P 500 and the Nasdaq pulling back after consecutive record highs as investors weighed hawkish Federal Reserve projections against the backdrop of a cooling economy.
The S&P 500 .SPX and the Nasdaq .IXIC notched record closing highs for the fourth consecutive session on Thursday, as technology shares rallied. The S&P 500 information technology sector .SPLRCT also closed at a record high for the fourth straight time.
Data showed on Thursday producer prices unexpectedly fell in May, while another report said the number of Americans filing new claims for unemployment benefits increased last week to a 10-month high. That helped keep alive hopes for a forthcoming interest rate cut by the Fed.
However, the central bank on Wednesday dialed back its projections for three cuts this year to just one.
Markets, however, seemed undeterred so far - CME's FedWatch tool shows an over 68% chance of a cut in September, while interest rate traders are pricing in about two cuts by year-end.
A rally in chip stocks, led by Broadcom AVGO.O, helped lift the semiconductor index .SOX to an all-time high on Thursday. The chipmaker rose 0.5% in premarket trading, while peers Nvidia NVDA.O and Micron MU.O were up 1.0% and 0.3%.
Futures tracking the small-cap Russell 2000 RTYcv1 slipped 1.3%, while Dow futures were firmly in the red after the index closed lower on Thursday.
Megacaps Amazon AMZN.O and Microsoft .MSFT.O slipped 0.4% and 0.5%, respectively, in trading before the bell.
While the S&P 500 and the Nasdaq are on pace for weekly gains for the second consecutive week, the Dow is on track to end the week slightly lower.
Hopes of easing Fed policy, combined with strength in Wall Street's biggest stocks, have seen major indexes rally to record highs this year. However, this has raised some concerns about the sustainability of equity strength.
A BofA Global Research report also showed the appeal of megacap growth stocks, as U.S. value stock funds saw $2.6 billion of outflows, while investors poured $1.8 billion into U.S. growth stock funds in the week to Wednesday.
The Russell 1000 growth index .RLG is up nearly 20% so far this year, while the value index .RLV has only gained around 5%.
Investors will also eye comments from Chicago Fed President Austan Goolsbee and Fed Governor Lisa Cook later on Friday, as well as May import and export price data and the University of Michigan's Consumer Sentiment survey for June.
At 5:35 a.m. ET, Dow e-minis 1YMcv1 were down 241 points, or 0.62%, S&P 500 e-minis EScv1 were down 18 points, or 0.33%, and Nasdaq 100 e-minis NQcv1 were down 10 points, or 0.05%.
Among single movers, Adobe ADBE.O jumped 15.3% after the company raised its revenue forecast for fiscal 2024 on Thursday, expecting more demand for its artificial intelligence-powered software.
Sirius XM SIRI.O slipped 2.0% after the Nasdaq said the stock would be removed from the Nasdaq 100 index, and replaced with Arm Holdings ARM.O. Shares of Arm rose 1.8%.
Reporting by Lisa Mattackal in Bengaluru; Editing by Maju Samuel
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