US Futures Show Caution Among Investors Ahead Of FOMC Meeting: Analysts Say Only Certainty Is That 'Things Will Remain Uncertain For The Time Being'
U.S. stock futures were flat on Tuesday after a bounce back on Monday. Futures of all four benchmark indices were mixed in premarket trading.
On Monday, stocks continued their recovery from last week’s sell-off, which had pushed the S&P 500 into correction territory amid growing concerns over the U.S. economy’s ability to withstand President Donald Trump‘s trade war.
The two-day meeting of the Federal Open Market Committee will begin today as they discuss and announce their decision on interest rates slated to be released tomorrow. Chairman Jerome Powell will address a press conference on Wednesday afternoon.
The 10-year Treasury yield stood at 4.31%, while the two-year yield was at 4.04%. According to the CME Group's FedWatch tool, there is a 99% chance that the Federal Reserve will keep interest rates unchanged tomorrow.
Futures
Change (+/-)
Nasdaq 100
-0.21%
S&P 500
-0.06%
Dow Jones
0.02%
Russell 2000
-0.22%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which tracks the S&P 500 index and Nasdaq 100 index, respectively, dropped slightly in premarket on Monday. The SPY was down 0.15% to $566.37, and the QQQ also declined 0.25% to $481.54, according to Benzinga Pro data.
Cues From The Last Session
Real estate, energy, and consumer staples stocks led Monday’s market rally, with significant gains across the S&P 500. Conversely, consumer discretionary stocks dipped.
This sector-driven strength propelled the Dow Jones higher extending the market’s recovery after last week’s sharp declines, which saw the Dow lose 3.1% and the S&P 500 drop over 2%.
In company news, Guess? Inc. (NYSE:GES) shares surged 30% on acquisition interest, and Baidu Inc. (NASDAQ:BIDU) shares climbed 9% following the launch of new AI models.
Economic data presented a mixed picture, with retail sales growth below expectations, a sharp drop in the NY Empire State Manufacturing Index, and a decline in housing market confidence.
Index
Performance (+/-)
Value
Nasdaq Composite
0.31%
17,808.66
S&P 500
0.64%
5,675.12
Dow Jones
0.85%
41,841.63
Russell 2000
1.19%
2,068.33
Insights From Analysts
The market sentiment seemed to be recovering ...
