Investing.com - Wall Street futures moved lower on Wednesday, as fears over the global effects of Britain’s decision to leave the European Union resurfaced on Tuesday, weighing heavily on financial markets around the world.
The blue-chip Dow futures was down 0.63%, the S&P 500 futures lost 0.67%, while the tech-heavy Nasdaq 100 futures retreated 0.79%.
Market sentiment remained weak as Britain’s shock decision to leave the EU continued to fuel uncertainty over the consequences of the U.K. vote on the country’s economy and the global economy as a whole.
The Bank of England warned on Tuesday of “challenging” risks to financial stability following the Brexit vote and eased regulatory requirements on the banking sector.
BoE Governor Mark Carney said the move represented a "major change" that would help the economy to cope with the Brexit consequences.
New York Federal Reserve President William Dudley said on Tuesday that the U.S. economy was on the right track but added that any signs of post-Brexit instability in the EU could have more severe consequences for the U.S.
Financial stocks were expected to be in focus on Wednesday, as they were among the worst performers in the previous session due to a massive flight to safer assets.
JPMorgan (NYSE:JPM) shares were down just 0.08% pre-market, as was rival Bank of America (NYSE:BAC).
The tech sector was also set to be in the spotlight, after Citi downwardly revised estimates for Apple's fiscal third and fourth-quarter earnings on Tuesday, citing Brexit-related uncertainty, currency volatility and longer iPhone replacement cycles.
Apple shares (NASDAQ:AAPL) were down 0.33% in pre-market trade.
Elsewhere, energy stocks could potentially be on the downside in Wednesday’s session, with oil prices moving back well below the $50 a barrel mark due to post-Brexit global growth concerns and renewed supply glut worries.
Later in the day, the U.S. was scheduled to release a report on non-manufacturing activity. Market participants were also awaiting the minutes of the Federal Reserve’s most recent policy meeting for possible hints on the central bank’s next policy moves.