Traders on the floor of the NYSE, June 30, 2023.
Source: NYSE
Futures tied to the S&P 500 traded near flat Tuesday night as investors parsed a batch of corporate earnings from major technology names and geared up for Wednesday’s interest rate policy decision.
S&P 500 futures were little changed, while Nasdaq 100 futures slid 0.2%. Futures tied to the Dow Jones Industrial Average slipped 42 points, or 0.1%.
Mega-cap tech stocks were among the biggest movers in extended trading following their respective earnings reports. Google-parent Alphabet rose more than 6% as cloud revenue growth helped propel the company to a better-than-expected quarter. On the other hand, Microsoft slid more than 3% after reporting slowing cloud revenue growth.
Outside of Big Tech, Snap tumbled 19% in after-hours action after giving weak guidance for current-quarter performance.
Investors are counting down to the Federal Reserve’s latest interest rate policy decision and subsequent press conference with Chair Jerome Powell scheduled for Wednesday afternoon. The market is pricing in around a 98% chance the central bank raises interest rates, according to the CME FedWatch Tool. That would mark a return to hikes after not increasing interest rates at the June meeting.
“Investors will focus on the post meeting press conference and look for any clues about future policy path,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “Commentary from Chair Powell that would indicate more restrictive policy is required to bring inflation under control could dampen recent stock market optimism.”
Wall Street notched a winning day on Tuesday as investors reviewed the latest earnings and made adjustments with the Fed decision on the horizon. After eking out a gain just shy of 0.1%, the Dow clinched its 12th-straight winning session, a length not seen since for the blue-chip average since February 2017. The S&P 500 and Nasdaq Composite finished about 0.3% and 0.6% higher, respectively.
Beyond the interest rate decision, investors will continue following the latest corporate financial releases on Wednesday. Coca-Cola, Stellantis, Boeing and AT&T are among companies expected to report before the bell, while Meta, Chipotle and Mattel‘s earnings are slated to drop after the market closes.