S&P 500 futures slide as investors monitor debt ceiling talks, Fed’s next move

S&P 500 and Dow Jones Industrial Average futures were lower Thursday as Wall Street traders weighed a bunch of crosscurrents including debt ceiling talks, the Federal Reserve’s next interest rate move and the latest earnings.

Dow futures shed 120 points following a post-earnings decline in Cisco Systems. Futures linked to the S&P 500 lost 0.2% and Nasdaq-100 futures were slightly lower.

Cisco shares fell 4% in premarket trading after reporting a decline in orders for the quarter.

Futures fell into the red as the latest economic data hinted at a resilient economy and as Dallas Fed President Lorie Logan said the latest data doesn’t argue for a pause in rate hikes yet when the Fed next decides rate policy on June 14.

“After raising the target range for the federal funds rate at each of the last 10 FOMC meetings, we have made some progress,” according to prepared remarks Logan to bankers in San Antonio.

House Speaker Kevin McCarthy told CNBC’s “Squawk Box” on Wednesday that he does not believe the U.S. will default on its debt. President Joe Biden also stated in later remarks that he was confident lawmakers would come together to reach a deal and avoid a default. The president is cutting short a trip to Asia and will return on Sunday, giving traders hope a deal could be done by then.

Bolstering markets was retail giant Walmart, which added 1.8% in early trading on the back of its strong financial report.

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