U.S. stock futures traded lower on Wednesday. The action comes after a sharp decline in Big Tech stocks and renewed fears about the path to interest rate cuts led to a sell-off on Wall Street.

S&P 500 futures had meanwhile fallen by 0.3% Nasdaq 100 futures slipped by about 0.5%. Futures tied to the Dow Jones Industrial Average fell 89 points or 0.2%.

Earlier, futures appeared to fall after CNN reported, citing sources, that President-elect Donald Trump is considering declaring a national economic emergency to impose new tariffs.

Palantirone of the S&P 500’s biggest gainers over the past year, up more than 340%, was in the red for the third straight day premarket, losing 3%. chip manufacturer Advanced micro devices lost almost 3% after a downgrade by HSBC.

Investors now look to ADP’s private payrolls report and jobless claims data, both due out Wednesday morning. Minutes from the Fed’s December meeting are scheduled to be released at 2 p.m. ET.

Stocks endured a difficult trading session as major averages closed solidly lower after new economic data showed stronger-than-expected expansion in the U.S. services sector, according to the Institute for Supply Management’s services index.

ISM readings showed prices rising over the month, fueling concerns about stubborn inflation and questions about the trajectory of this year’s interest rate cuts by the Federal Reserve. According to the CME’s FedWatch tool, markets are currently pricing in a 95 percent chance that there will be no rate cuts at this month’s central bank meeting.

Bond yields, which have risen on bets that Trump’s tariff and tax plans could lead to a rise in inflation, rose on the data. The price on the benchmark 10 year bond was recently above 4.7% and thus close to the level last observed at the end of April.

However, Ayako Yoshioka, head of portfolio advisory at Wealth Enhancement Group, believes the market’s positive trajectory is still intact heading into 2025, even if the path to “decent” returns is more volatile.

“We have so many different crosscurrents, whether it’s on the growth side, on the inflation side or on policy changes,” Yoshioka said on CNBC’s “Closing Bell” on Tuesday. “This will probably rattle the markets at times, but I think overall in the long term these are just buying opportunities.”