finance
U.S. Stock Futures Rise Ahead of Fed Rate Decision and Tech Earnings
U.S. stock futures edged higher as investors awaited the Federal Reserve's interest rate decision and earnings from major technology companies. The central bank is expected to keep rates unchanged in what may be the current chair's final meeting. Market movements included gains in some stocks after earnings reports, amid broader economic considerations.
Apr 29, 1:37 AM·2m read9 sources
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BenzingaAudio version
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U.S. stock futures showed modest gains early on Wednesday, with S&P 500 futures edging higher and Nasdaq 100 futures up 0.26%. Futures tied to the Dow Jones Industrial Average remained broadly flat. This came as traders anticipated quarterly earnings from four major technology stocks and the outcome of the Federal Reserve's policy meeting.
m. ET, with markets expecting no changes to the current federal funds rate. The meeting marked what was likely the last for Jerome Powell as chair, with his term ending in May. Kevin Warsh, the nominee to succeed him, appeared on track for confirmation.
In after-hours trading, Starbucks shares jumped 5% after the company raised its full-year outlook. Conversely, Robinhood shares fell 9% following first-quarter results that missed expectations. Seagate Technology and NXP Semiconductors both surged about 16% after reporting earnings beats and providing positive revenue guidance.
NXP Semiconductors' results boosted other analog chipmakers, with Texas Instruments up 0.5% and Analog Devices rising 1.8% in premarket trading. Booking Holdings shares dropped 4.13% in premarket after forecasting second-quarter sales below market estimates, at $7.070 billion to $7.206 billion versus expectations of $7.566 billion.
“These companies, last time they reported, they increased full-year capex — just those four companies — by $94 billion. Technology sector losses led the downturn, following a report that OpenAI missed its revenue and user growth targets. Oracle, which has a $300 billion, five-year partnership with OpenAI, slid 4%. Chip companies Broadcom and Nvidia dropped 4% and more than 1%, respectively. The 10-year Treasury bond yielded 4.36%, and the two-year bond yield stood at 3.85%. Investors focused on upcoming earnings from Alphabet, Amazon, Meta Platforms, and Microsoft, with expectations for revenue justification of their artificial intelligence investments. The SPDR S&P 500 ETF Trust rose 0.063% to $712.14 in premarket, while the Invesco QQQ Trust ETF advanced 0.21% to $658.90.”
