US stock futures drop after bruising session with more rate cues on tap

Investing.com– U.S. stock index futures fell in evening deals on Wednesday, extending losses on Wall Street as caution over upcoming cues on interest rates and inflation saw investors turn averse towards equity markets.

Stocks were hit with some measure of profit-taking after reaching record highs earlier in May, while weak earnings from Salesforce (NYSE:) also dented sentiment in after-hours trade. The software firm plummeted nearly 16% after the bell, as its guidance missed estimates.

fell 0.4% to 5,264.50 points, while fell 0.5% to 18,713.0 points by 19:37 ET (23:37 GMT). slid 0.7% to 38,252.0 points. 

Market darling NVIDIA Corporation (NASDAQ:) fell 1% in afterhours trade, as an extended darling in the chipmaking heavyweight now appeared to be petering out.

Wall Street weakens as rate jitters persist ahead of GDP, Fed comments

Wall Street indexes fell on Wednesday amid persistent concerns over high interest rates, especially ahead of key inflation data due on Friday. data- the Federal Reserve’s preferred inflation gauge- is due this Friday. 

But before that, a revised reading on first-quarter data is due on Thursday, and is expected to show some resilience in the U.S. economy- a scenario that gives the Fed enough headroom to keep rates high for longer.

Hawkish comments from Fed officials continued to trickle in through the week, as they kept up warnings that inflation will need to fall further before any interest rate cuts. This also saw traders largely price out expectations for a cut in September. 

The fell 0.7% to 5,266.95 points, while the fell 0.6% to 16,920.58 points after hitting a series of record highs. The fell 1.1% to 38,441.54 points. 

Aftermarket movers: American Eagle slides, HP rises 

Among notable aftermarket movers, apparel retailer American Eagle Outfitters Inc (NYSE:) slid over 9% after clocking weaker-than-expected quarterly earnings, as sticky inflation dented shopping trends.

Artificial intelligence firm UiPath Inc (NYSE:) slid nearly 29% after its guidance missed street estimates.

On the other hand, PC maker HP Inc (NYSE:) rose 2.2% after its quarterly earnings beat estimates on improving demand, thanks in part to AI.