Stock futures rose slightly in overnight trading as Wall Street braced for the Federal Reserve’s latest meeting minutes and more insight on the central bank’s future hiking agenda.
Shares of Palo Alto Networks popped after the bell as the cybersecurity company lifted its earnings forecast for the year. Crypto exchange platform Coinbase topped revenue expectations.
Futures tied to the Dow Jones Industrial Average added 34 points, or 0.1%. Meanwhile, futures linked to the S&P 500 inched 0.09% higher, and Nasdaq 100 futures gained 0.12%.
Mounting concerns that the Federal Reserve will continue hiking rates spooked investors during regular trading Tuesday and pushed stocks to cap off their worst day of 2023. A slew of earnings reports, including disappointing results from Home Depot, also sparked concerns about the health of the consumer.
The Nasdaq Composite led the session’s losses, falling 2.5%, while the S&P 500 slumped 2%. The Dow Jones Industrial Average dropped 2.06% and turned negative for the year. All major S&P sectors finished with losses, led to the downside by consumer discretionary.
Rising bond yields also kept the market on edge, with the rate on the 10-year Treasury note hitting its highest level since November during the day.
“I think there’s a repricing of the equity market based on the view that the Fed will likely have to be higher for longer, and because of the rising interest rates,” said Truist’s co-chief investment officer Keith Lerner.
Attention now shifts toward the Fed minutes due out Wednesday. Investors will scour the results for insight into the central bank’s future rate hiking path and its recent 25 basis point increase.
Earnings season rolls on with results from Nvidia, Etsy and Baidu.
Read the full article here
