Investors Await Crucial U.S. Payroll Revisions and Fed Minutes

Investors stayed cautious on Wednesday as they awaited U.S. payrolls data revisions and minutes from the Federal Reserve's last policy meeting. Financial markets are pricing in potential rate cuts by the Fed in September. Meanwhile, light trading volumes were observed due to summer breaks.

Investors stayed largely cautious on Wednesday, awaiting crucial revisions to U.S. payrolls data and the minutes from the Federal Reserve's last policy meeting. The Bureau of Labor Statistics is expected to release the payrolls data at 10:00 a.m. ET, with economists predicting a downwards revision ranging between 600,000 to 1 million for jobs created from April 2023 to March 2024.

The Federal Reserve minutes, due later in the day, are expected to offer more insights ahead of Chair Jerome Powell's speech at the economic symposium in Jackson Hole on Friday. Financial markets are currently pricing in a 69.5% likelihood of a 25 basis-points interest rate cut by the Fed in September.

Meanwhile, trading volumes on U.S. stock markets have been notably lighter this month as many investors are on summer break. Individual stocks showed mixed performance, with JD.com shares dropping 7.7% after Walmart sold its entire stake, while Keysight Technologies gained 11.1% following strong quarterly results.

(With inputs from agencies.)