S&P 500 futures fell at the start of trading on Tuesday, as investors awaited a busy week of corporate earnings announcements and the Federal Reserve's interest rate decision.
S&P 500 futures fell 0.1%, and Nasdaq 100 futures declined 0.73%. In contrast, Dow Jones futures rose 86 points, or 0.16%.
Wall Street opens trading after a volatile session on Monday. The Dow Jones Industrial Average, which tracks 30 stocks, rose more than 260 points, or nearly 0.5%, while the S&P 500 gained slightly, supported by a drop in oil prices following a lull in fighting in the Middle East.
While the Nasdaq Composite finished trading down 0.2%, impacted by a decline in semiconductor stocks, this effect extended to Asian markets during evening trading, with South Korea’s Kospi index temporarily halting trading after falling 10.84%.
This market tension reflects the uncertainty preceding a busy week for stocks, with anticipation building for earnings reports from Amazon, MetaPlatforms, and Microsoft. The performance of the semiconductor market hinges on continued spending by cloud computing giants, even as major companies struggle. Apple will also announce its results this week.
The Federal Reserve is scheduled to announce its interest rate decision on Wednesday. Investors expect the central bank to leave rates unchanged but will be seeking further clarity on the future path of monetary policy. Fed funds futures last pointed to a quarter-point rate hike in September, according to Fidwatch.
“We expect no change,” said Padric Garvey, ING’s regional head of Americas research, in a note Tuesday morning. “We believe inflation expectations are low enough to reassure investors. The structure of the yield curve also does not point to an interest rate hike cycle.”
On Tuesday, traders will be watching the release of the consumer confidence report. Quarterly results from Coca-Cola, UBS, Corning, and Boeing are scheduled to be released before the market opens.
Investors will also continue to monitor oil prices and the bond market. Brent crude futures, the global benchmark, fell below $90 a barrel amid a lull in fighting between the United States and Iran. The yield on the benchmark 10-year US Treasury note dropped to around 4.65%.
Japan's Nikkei 225 index closed down 3.95%, while South Korea's Kospi index fell 10.84%. Australia's benchmark S&P/ASX 200 index rose 0.60%. China's CSI 300 index closed down 2.83%.
European stocks opened Tuesday's session with a general rise, bucking the negative trend that prevailed in Asian indices.
Shortly after the session opened, the pan-European STOXX 600 index rose 0.3%, with all regional exchanges and most sectors, except for oil and gas stocks, posting gains.
Britain's FTSE 100 index opened 0.4% higher, while France's CAC 40 index rose 0.4% and Germany's DAX index climbed 0.5%.
