Peter Nurse    

Investing.com — U.S. stocks are seen opening lower Wednesday, handing back some of the week’s gains in muted trading ahead of key inflation data which could guide future Federal Reserve monetary policy.

At 7:01 AM ET (1100 GMT), it was trading down 130 points (or 0.4%), and fell 14 points (0.4%) and 23 points (0.2%).

Wall Street’s major indices ended Tuesday higher for the second consecutive day. The blue-chip gained over 260 points or 0.8% while broad-based and tech-heavy were 0.9% lower.

These gains were achieved despite the presence of big-box retailers Target (NYSE:) It has cut its profit guidance. The Federal Reserve’s recent high level of inflation is causing economic decline.

The Treasury Secretary stated Tuesday to the Senate Finance Committee that she expected inflation to stay high. Yellen testifies again later Wednesday, but the main focus is on Friday’s  for May, amid expectations that it could provide clues on the future path of after the hikes next week and in July.

The cut its growth forecasts in its latest Economic Outlook, published earlier Wednesday, while lifting its inflation forecasts, citing Russia’s invasion of Ukraine and the West’s response to it. 

Paris-based company now expects global growth to be 3% in 2018, which is less than its December forecast of 4.5%. Inflation will peak at 8.5%, higher than previously predicted.

The forecaster had previously lowered its global growth projections to 2.9%.

This is corporate news Novavax (NASDAQ:) stock is seen surging premarket after the drugmaker’s two-dose COVID-19 vaccine took a huge step toward regulatory authorization in the U.S., with the Food and Drug Administration panel voting overwhelmingly that its benefits outweigh its risk.

Earnings from spirits manufacturer Brown-Forman (NYSE):, owner of Jack Daniels and Finlandia brand names, as well as food maker Campbell Soup The session will see the release of Five Below (NASDAQ) and (NYSE:) discount retailer Five Below (NASDAQ).

As the U.S. summer driving seasons kick into gear, and China comes out of its virus lockdowns, oil prices rose Wednesday.

Suhail Al Mazroui, Energy Minister of the United Arab Emirates warned that global supply and demand balances could worsen. This would push prices up as China’s recovery continues.

At 10:30 am ET (1430 GMT) the U.S. will release official data. This comes after the US’s industry body the reported on Tuesday a surprising build of 1.8million barrels last week.

After reaching their highest settlement of March 8, Tuesday (8th), futures had traded 1.1% higher to $120.72/barrel at 7AM ET. After closing at its highest level since May 31, the contract rose by 1% to $121.73.

The price fell 0.1% to $1.849.90/oz and traded 0.2% lower at 1.0722