Wall Street Futures Slip on Tech Weakness, Fed Caution – Asia Market Wrap

US equity futures declined, signaling a cautious tone on Wall Street as investors reassessed lofty valuations in technology shares and parsed mixed signals from Federal Reserve officials.

S&P 500 contracts fell 0.8% after the underlying index eked out a modest gain Monday, even as more than 300 of its components declined. Nasdaq 100 futures dropped 1.1%, with Palantir Technologies Inc. sliding over 4% in extended trading amid renewed scrutiny of its steep valuation following a record rally. European stocks were set for a softer open, while Asian equities slipped 0.8%. In South Korea, regulators issued a rare “investment caution” on SK Hynix Inc. after the chipmaker’s shares soared 240% this year.

The dollar strengthened for a fifth straight session, reaching its highest level since August against most Group-of-10 peers, as traders digested conflicting remarks from Fed officials. Chair Jerome Powell reiterated that a December rate cut isn’t guaranteed, dampening bets on imminent easing.

The Institute for Supply Management’s manufacturing index slipped to 48.7, marking its 16th consecutive month in contraction territory. With the US government shutdown stalling official economic data releases, policymakers have leaned more heavily on private surveys like the ISM report to gauge activity and labor-market trends. Friday’s scheduled employment report is also expected to be delayed.

Elsewhere, gold edged lower for a third session, Treasuries steadied, and oil retreated as markets digested OPEC+’s decision to pause production increases. The yen firmed following another round of verbal intervention from Japan’s finance minister, while the Australian dollar weakened after the RBA held rates steady. In contrast, India’s rupee strengthened, rebounding from near-record lows amid suspected central-bank intervention.

On the policy front, Fed Governor Lisa Cook said the risks of further labor-market softening outweigh the chance of renewed inflation pressures, though she stopped short of backing another rate cut. “Policy is not on a predetermined path,” she said, emphasizing that December remains a ‘live meeting.’ Her stance was echoed by San Francisco Fed President Mary Daly, who urged officials to ‘keep an open mind’ on further easing, while Governor Stephen Miran noted that monetary policy remains restrictive.