Stock futures pointed to a lower opening on Wall Street Wednesday as investors sought a safe haven in gold after the U.S. Federal Reserve warned of deflation and a slowing recovery.
About two hours before the start of trading, Dow Jones Industrial Average futures were 23 points lower at 10671. The S&P 500 futures declined 3.3 to 1131.4, and Nasdaq 100 futures lost 7.25 to 1978.25. Changes in futures do not always accurately predict early market moves after the opening bell.
On Tuesday, U.S. stocks ended mixed after the Federal Reserve said it's "prepared to provide additional accommodation if needed to support the economic recovery."
"The market's a little bit concerned by the Fed's downbeat view of the economy without a second round of quantitative easing," said GFT Global analyst David Morrison. "The market seems to be stuck at an impasse with equities testing resistance levels, but investors wary of taking them higher without a better indication of what might drive them in the coming months."
Gold futures rallied to new highs above $1,290 an ounce, while the U.S. dollar fell sharply against its major rivals. European stocks traded deep into negative territory, with the Stoxx Europe 600 index dropping 1.2%.
The economic calendar is thin, with the FHFA house-price index due after the U.S. stock markets open. With little by way of data before Thursday's weekly jobless report and housing data, U.S. stocks look set to lack momentum and direction Wednesday.
In the currency markets, the euro gained 0.8% to $1.3382 and the British pound advanced to $1.5678. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell 0.8% to 79.765.
On the corporate front, General Mills is expected to report quarterly results. Shares of Adobe Systems dropped 15% in pre market trade after it issued an earnings forecast that was below market expectations.
Gold for December delivery soared to an intraday high of $1,296.50 an ounce on Globex. The contract was recently $20.50 higher at $1,294.80 an ounce.
