On Wednesday evening, March 27th, US stock index futures edged slightly lower following hawkish remarks from Federal Reserve Governor Christopher Waller, losing some momentum after a positive day on Wall Street.

Market caution was also influenced by the final estimate of the US fourth-quarter Gross Domestic Product (GDP), scheduled for release later on Thursday. This is closely followed by key inflation statistics and speeches from other Federal Reserve officials to be announced on Friday. Overall trading volumes are relatively lower due to the upcoming Easter holiday.

As of 19:16 Eastern Time (23:16 Greenwich Mean Time), S&P 500 index futures fell by 0.1%, standing at 5304.75 points, while Nasdaq 100 index futures dropped by 0.1%, at 18485.75 points. Dow Jones Industrial Average index futures also decreased by 0.1%, at 40119.0 points.

Waller stated that due to inflation surpassing expectations in recent months, there's currently no urgency for the Fed to cut interest rates. Despite the Fed likely to eventually cut rates this year, the sustained strength of the US economy currently provides enough flexibility for the Fed to maintain higher rates for a longer period.

His comments contrast with slightly dovish forecasts from the Fed earlier this week, which indicated an expected reduction of around 75 basis points by 2024. This sparked a rebound on Wall Street last week, with US market indices now approaching historic highs.

On the day, Wall Street indices saw significant gains, rebounding from three consecutive days of decline, with utility company stocks soaring as bond yields fell.

The S&P 500 index rose by 0.9%, hitting a new high at 5248.49 points, while the Dow Jones Industrial Average outperformed its peers, rising by 1.2%, yet still failing to reach its historical high of 39760.08 points. The Dow Jones Industrial Average was largely boosted by pharmaceutical giant Merck & Co. (NYSE: MRK), reaching new highs after FDA approval of a drug for a rare lung condition.

The Nasdaq Composite index underperformed its counterparts, rising by 0.5%, at 16399.52 points. The index's gains were primarily affected by the continuous decline of AI leader Nvidia Corporation (NASDAQ: NVDA), as traders sought to lock in profits after its significant gains over the past year. Nvidia fell by 0.3% in after-hours trading, down about 7% from the near historic highs it set earlier this week.

The market is currently awaiting new inflation clues from the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation measure, scheduled for release on Friday when the market will be closed, but is expected to widely impact the outlook for US rates.

In addition to the PCE data, speeches from Federal Reserve Chair Jerome Powell and Federal Open Market Committee member Mary Daly are also scheduled for release on Friday.