Futures come out ahead of trading data

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 22, 2022. REUTERS/Brendan McDermid

Aug 23 (Reuters) – U.S. stock indexes edged higher on Tuesday after strong signs of a Federal Reserve interest rate hike on Wall Street and fears of a hit from manufacturing and services data weighed on Wall Street in the previous session.

Due at 9:45 a.m. ET, the S&P Flash Composite Purchasing Managers’ Index (PMI), which provides an indication of the strength of the U.S. economy, follows weak readings from Europe earlier in the day, fueling expectations of a recession in the region. and pressured global markets.

Wall Street closed at its lowest level in the past two sessions as investors worried about the Fed’s meeting in Jackson Hole, Wyoming later this week, where Federal Reserve Chairman Jerome Powell is expected to reinforce a strong commitment to end inflation in four decades. High.

After a rough start to the year, markets have rallied since mid-June on hopes that inflation has picked up, but the summer rally was sparked last week by renewed fears over the Fed’s aggressive monetary policy tightening.

Economists polled by Reuters expected a 50 basis point hike, while traders remained split between a 50 basis point increase and a 75 basis point hike by the central bank. Read more at FEDWATCH

U.S. Treasury yields retreated slightly on Tuesday, a day after surging above 3 percent for the first time since July 21, supporting battered megacap growth and tech stocks.

Top growth stocks such as Apple Inc ( AAPL.O ) and Amazon.com Inc ( AMZN.O ) were up 0.3% each in pre-bell trading, while most banks were also higher.

At 06:47 am ET, Dow e-minis were up 70 points, or 0.21%, S&P 500 e-minis were up 9.25 points, or 0.22%, and Nasdaq 100 e-minis were up 31.25 points, or 0.24%.

Invader favorite Zoom Video Communications Inc ( ZM.O ) fell 11 percent after the company cut its annual profit and revenue forecast. Read more

Palo Alto Networks ( PANW.O ) gained 8.5% after the cybersecurity firm posted quarterly results and announced a stock dividend plan.

U.S.-listed Chinese e-commerce giant PinduDuo ( PDD.O ) rose 2.4% on plans to launch a cross-border e-commerce platform next month, targeting the U.S. as its first market, according to a source with direct knowledge. There is the thing. Read more

JD.com Inc rose 5.2%, beating Wall Street estimates as lockdowns to control the spread of the coronavirus in China boosted online shopping and the company’s “618” trading event. Read more

Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila

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