(Reuters) - U.S. stock index futures were largely flat on Wednesday, as investors remained on the sidelines ahead of the preliminary revisions to U.S. payrolls data and the release of minutes from the Federal Reserve's last policy meeting.
The report from the Bureau of Labor Statistics is due at 10:00 a.m. ET. Most economists expect a downwards revision, with Goldman Sachs expecting that 600,000 to 1 million fewer jobs were created from April 2023 to March 2024.
"A stronger number would also not change much to the Federal Reserve's easing trajectory as the latest job data is already hinting at a cooling labour market," strategists at ING wrote in a morning note.
Minutes from the Fed's July policy meeting are also due later in the day, ahead of Chair Jerome Powell's speech at the economic symposium at Jackson Hole on Friday.
"We expect the Fed chairman to continue to signal that a first rate cut is on the cards for September. Yet there is a chance that investors could be disappointed by the comments, if there are any references to the stickiness of inflation," said Guy Stear, head of developed markets strategy at the Amundi Investment Institute.
Financial markets are currently pricing in a 69.5% likelihood of a 25 basis-points interest rate cut by the Fed in September, with a 30.5% chance of a super-sized 50 bps cut, according to CME's FedWatch tool.
Fed Governor Michelle Bowman on Tuesday said she remains cautious about any shift in central bank policy as she sees continued upside risks for inflation, warning that overreacting to any single data point could put progress made against inflation at risk.
At 05:10 a.m. ET, Dow E-minis were up 53 points, or 0.13% and S&P 500 E-minis were up 2.25 points, or 0.04%, while Nasdaq 100 E-minis were down 7.75 points, or 0.04%.
Wall Street's main indexes closed marginally lower on Tuesday, breaking their recent winning streak.
Risk appetite had returned to global equities last week following sharp declines earlier this month, boosted by the likelihood of rate cuts from the U.S. central bank in September, with all three major U.S. benchmarks now at levels seen before the sell-off.
Among individual stocks, second quarter earnings from retail major Target are due before the opening bell.
U.S.-listed shares of Chinese e-commerce firm JD.com dropped 7.7% in premarket trading after Reuters reported that Walmart, the company's biggest shareholder, has sold its entire stake in the firm.
Keysight Technologies gained 11.1% after the electronic equipment maker beat third-quarter revenue and profit estimates.
Overall, U.S. stock trading volumes have been light this month as many investors are away for summer break.
(This story has been refiled to correct the day to Tuesday in paragraph 9)
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Varun H K)