U.S. stock futures rose early Tuesday as earnings season picked up pace and traders looked ahead to the Fed decision midweek.
How are stock-index futures trading
-
S&P 500 futures
ES00,
+0.11%
dipped 5 points, or 0%, to 35576 -
Dow Jones Industrial Average futures
YM00,
-0.05%
added 5 points, or 0.1%, to 4589 -
Nasdaq 100 futures
NQ00,
+0.35%
eased 44 points, or 0.3%, to 15605
On Monday, the Dow Jones Industrial Average
DJIA,
rose 184 points, or 0.52%, to 35411, the S&P 500
SPX,
increased 18 points, or 0.4%, to 4555, and the Nasdaq Composite
COMP,
gained 26 points, or 0.19%, to 14059.
What’s driving markets
The Dow Jones Industrial Average is on an 11-session winning streak, its best run in more than six years, as hopes build that the Federal Reserve’s rate hikes will not cause a recession as inflation cools.
Whether the Dow can make it an even dozen — and extend its rally even further to fresh 15-month highs — will likely depend on the next few days containing corporate earnings and Fed comments.
Dow components 3M
MMM,
Microsoft
MSFT,
and Visa
V,
will deliver results on Tuesday, with non-Dow member Alphabet
GOOG,
also a highlight, with only 3M reporting numbers ahead of the open. Coca-Cola
KO,
and Boeing
BA,
are among those Dow members presenting their numbers on Wednesday.
Midweek also sees the Fed’s latest monetary policy decision. The market is certain the central bank will increase interest rates by another 25 basis points to a range of 5.25% to 5.50%.
But investors are less sure of whether that will be the last hike of the current cycle, so the Fed’s accompanying statement and what Chair Jerome Powell says at his press conference will be the main drivers of bonds, equities and forex around the event.
And that may lead to disappointment, warned Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “[W]hat Fed officials will also do is to remind investors that the tightening cycle is probably not over and that there will probably be another rate hike on the U.S. horizon. So yes, there is a great chance that the Fed will spoil your mood if you are among those thinking that this week’s rate hike will be the last for this tightening cycle in the U.S..”
Meanwhile, helping underpin sentiment on Tuesday was a rebound in Chinese stocks, notably property developers after Beijing signaled support for the heavily-indebted sector.
U.S. economic updates set for release on Tuesday include the S&P Case-Shiller home price index for May, due at 9 a.m. Eastern, and July consumer confidence at 10 a.m.
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