U.S. stock futures were little changed Tuesday night as the major averages won as investors awaited the Federal Reserve's latest policy decision.
Dow Jones Industrial Average Futures It was flat. S&P500 futures Although it fell by 0.03%, Nasdaq 100 futures It increased by 0.05%.
Wall Street is coming off a strong session against major benchmarks. 30 shares Dow It rose 320 points (0.8%), its best day since February 22nd. S&P500 Although it rose by about 0.6%, Nasdaq Composite Approximately 0.4% was added.
The recent weakness in tech stocks has some investors discussing whether the rise in artificial intelligence is slowing while the rest of the market gains momentum. On Tuesday, communications services, which includes Alphabet Inc. and Metaplatform Inc., were the only sectors in the S&P 500 that fell, while energy and utility stocks led the overall index.
Semiconductor stocks also underperformed. VanEck Semiconductor ETF (SMH) Down 0.2%.Bitcoin proxy share micro strategy and super microcomputer It was a noticeable decline.
“All else being equal, we're seeing this rotation and churn happening under the surface,” Liz Ann Saunders, chief investment strategist at Charles Schwab, said on CNBC's “Closing Bell.” That's not a bad thing,” he said. “I think this sends a message about the resilience of the economy. That's why there's a cyclical bias to what has worked in the past.”
The Fed is largely expected to keep interest rates on hold at the end of its two-day policy meeting on Wednesday. But investors will look at the dotplot for insight into the number and timing of rate cuts, and many expect the central bank to start cutting rates in June.
Some are concerned that the rate cut could be even smaller than the market expected, given the recent spate of dire inflation reports. “The dot plot could indicate that we've taken yet another part out of his previous three parts,” Saunders said. “But the question is, at what point does it impact the market, given the resilience of the market to date? Ultimately, it's not just the Fed's responsiveness, but the sustainability of the economic growth profile. I think gender is the problem.”
In terms of corporate profits, micron technology and general mills We will report the results on Wednesday.
