Dow Jones Futures hesitate as markets turn cautious

• The Dow Jones Index wavers around Tuesday's closing, with risk appetite waning.
• Most US equity indices are flat, pointing to a neutral Wall Street opening on Wednesday.
• Soft US business activity data and Fed Powell's comments failed to cheer investors on Tuesday.

Dow Jones Index futures are wavering near Tuesday's closing levels, around the 46,300 area, during the early European session on Wednesday. The main European indices are in the red after a choppy session in Asia as investors' appetite for risk faded amid ongoing geopolitical risks.

Wall Street Indexes are set to a neutral opening on Wednesday. The Dow Jones Index futures are practically flat, at 46,310 at the time of writing, while the S&P 500 and the Nasdaq futures advance less than 0.1% each.

Tuesday's data was not particularly supportive, as US business activity slowed down for the second consecutive month in September, in line with expectations. Firms claim that tariffs are pushing costs higher, while the fierce competition and weaker demand limit their ability to hike prices.

Somewhat later, Fed Chair Jerome Powell reiterated the challenges the Fed faces in navigating a softening labor market and higher inflationary risks, warning that further interest rate cuts are not guaranteed. These comments, however, did not alter the market consensus that the bank will cut rates in the two remaining meetings this year.

In the absence of key macroeconomic releases on Wednesday, the sour market sentiment is likely to keep demand for equities subdued, as investors await US GDP and Jobless Claims figures on Thursday and the PCE Prices Index release on Friday.