Day trading pre-market open February 1

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Negative after the US Federal Reserve douses hopes for a March rate cut.

ASX futures: down 84 points or 1.1%


Overnight themes:

• US stocks slump after Federal Reserve Chair Jerome Powell says the central bank is unlikely to lower benchmark rates at its March meeting.
• Stocks hit session lows shortly after Powell says, "I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March is the time to do that.”
• A Fed policy statement released with this morning's rates decision says the central bank "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%."
• The odds on a March cut tumble to 35% from around 60% before this morning's press conference.
• Earlier, the Fed leaves benchmark rates on hold, as widely expected, and drops a reference to "additional policy firming" in its rates statement that previously indicated a tightening bias.
• Powell says, "We believe that our policy rate is likely at its peak for this tightening cycle and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint, at some point this year.”
• Stocks are already under pressure following poorly-received trading updates from Microsoft and Google parent company Alphabet. Microsoft drops 2.69% as weak forward guidance offset an earnings beat. Alphabet plunges 7.35% as ad revenues fell short of expectations.
• Rate-sensitive growth stocks fall hardest as treasury yields swing wildly. The communication services, tech and consumer discretionary sectors lose between 1.85% and 3.93%. Resource and banking stocks are also weak, declining more than 1.2%. Healthcare is the best of the sectors with a loss of 0.11%.
• "It does appear that further rate hikes are off the table, which is a positive, but investors should continue to expect higher [rates] for longer as we're still quite a ways away from the sort of economic data that would push the Fed to lower rates" - Oliver Pursche, senior vice president at Wealthspire Advisors (per Reuters).
• Iron ore slides to its lowest in more than a week after Chinese factory activity contracts for a fourth month. Trading volumes are impacted by the end of pre-Lunar New Year holiday restocking by steel mills. China-traded ore declines 3.08%.

Key events today:

• Building approvals - 11.30 am AEDT
• Business confidence - 11.30 am
• China manufacturing (Caixin) - 12.45 pm
• US manufacturing, unemployment claims - tonight

S&P 500: down 79 points or 1.61%

Dow: down 317 points or 0.82%

Nasdaq: down 346 points or 2.23%

Dollar: down 0.5% to 65.62 US cents

Iron ore (Dalian): down 3.08% to US$133.74

Brent crude: down US$1.16 or 1.4% to US$81.71

Gold: up US$16.50 or 0.8% to US$2,067.40

NYSE Arca Gold Bugs: down 0.42%

Bitcoin: down 2.16% to US$42,635

Copper (LME): up 0.01% to US$8,615.50

Nickel (LME): down 1.78% to US$16,250

Uranium (spot price): up 0.97% to US$1.02

Lithium carbonate (China spot): steady at US$13,467.60

Global X Lithium & Battery Tech ETF: down 2.08%

BHP: down 0.89% (US); up 0.43% (UK)

Rio Tinto: down 1.3% (US); down 0.16% (UK)