Subdued Wall Street Start Amid Economic Indicators and Tech Slumps

Wall Street is poised for a cautious opening, reacting to strong economic data and tech sector forecasts. Futures recovered some losses as Q3 GDP aligned with forecasts, and jobless claims decreased. Concerns over inflation, Federal Reserve policies, and potential trade wars were highlighted amidst tech stock declines.

Wall Street is preparing for a restrained start on Wednesday, as investors digest robust economic data and a key inflation report looms, potentially affecting Federal Reserve policy directions. Futures rebounded after the Commerce Department confirmed a 2.8% GDP growth rate for the third quarter, meeting economist expectations.

A report showed jobless claims at 213,000, slightly below estimates of 216,000. This has adjusted trader predictions, with a 68% chance of a 25 basis point interest rate cut by the central bank in December, according to CME's FedWatch. Shorter-dated Treasury bond yields fell, easing pressure on riskier stocks.

Attention now shifts to the Personal Consumption Expenditure report, the Federal Reserve's favored inflation measure. Economists anticipate a 2.3% annual price increase in October, surpassing both last month's rise and the Fed's 2% target, amid uncertainties around President-elect Donald Trump's economic policies. Meanwhile, tech stocks like Dell, HP, and Workday faced declines following unfavorable forecasts.

(With inputs from agencies.)