Fed Rate Cut Outlook Dents Wall Street Pre-Bell; Asia up, Europe Off

07:32 AM EDT, 08/25/2025 (MT Newswires) -- Wall Street futures pointed moderately lower pre-bell Monday, as traders reviewed expectations that the Federal Reserve in September will ease interest rates.

Fed Chair Jerome Powell delivered comments Friday to the Jackson Hole central banker symposium that were regarded as dovish, but pending economics releases could alter mood at the monetary authority. Following his speech, markets scaled back their expectations of a 25-basis-point rate cut next month as analysts cautioned that a move in September isn't guaranteed.

In the futures, the S&P 500 fell 0.3%, the Nasdaq declined 0.4% and the Dow Jones was off 0.2%.

Asian exchanges traded higher overnight on Powell's Friday commentary, while European bourses tracked moderately lower midday on the continent.

Market denizens also await the Wednesday after-bell earnings report from semiconductor and AI colossus Nvidia (NVDA). CrowdStrike (CRWD), Snowflake (SNOW), Dell Technologies (DELL), Marvell Technology (MRVL), HP (HPQ), and Autodesk (ADSK) are also chalked to report results later this week.

Shares in Wayfair (W), a furniture and home-goods retailer, fell 5.8% pre-bell after President Donald Trump on Friday announced he's directing his administration to probe furniture imports into the US that could result in higher tariffs.

The personal consumption expenditures core price index (PCE-core) for July, the Fed's preferred price metric, is slated for a Friday release.

On the Monday economic calendar is the Chicago Fed National Activity Index for July at 8:30 am ET, followed by the new home sales for July bulletin at 10 am.

The Dallas Fed Manufacturing Survey for August posts at 10:30 am.

Dallas Fed President Lorie Logan and New York Fed President John Williams speak on Monday.

In pre-market action, Bitcoin traded at $111,110, West Texas Intermediate crude oil traded higher at $64.13, and 10-year US Treasuries offered 4.27%. Spot gold traded for $3,367 an ounce.

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