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Macro Economy•1 July 2026•
1 min read

U.S. Stock Futures Slide as Rate Hike Expectations Weigh on Start of H2

Key Facts

1U.S. stock futures pointed down in early European trade, as global equities looked set to kick off the second half of the year in the red.

With rate hike fears persisting, U.S. stock futures are pointing to a negative start for the second half of the year. In early European trade on Wednesday, futures pointed lower, as expectations of higher interest rates weighed on global markets, according to a report from The Wall Street Journal.

The movement comes amid strong U.S. economic data that reinforces expectations of continued monetary tightening. Last week's data showed Q1 GDP growth of 2.1% quarter-on-quarter, beating the 1.6% forecast, per economic calendar data. Meanwhile, the annual Super Core PCE inflation index rose to 3.94% from 3.56% previously, underscoring persistent inflationary pressures.

Investors are now focused on upcoming speeches by central bank officials, including Federal Reserve members, for clues on the rate path. Markets are also awaiting the Fed's bank stress test results scheduled for this week, which could affect financial sector sentiment. In the absence of fresh positive catalysts, U.S. equities may face further pressure in the coming sessions.