Dow futures lower as investors weigh tech gains, await Fed

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Stock index futures pointed to a flat or slightly lower start for Wall Street on Wednesday as investors awaited the conclusion of a Federal Reserve policy meeting and continued to scrutinize the quarterly results of the stock heavyweights. technology. Additionally, President Joe Biden is expected to unveil a $ 1.8 billion package of new spending and tax cuts for children and families Wednesday night.

What are the major indices doing? Dow Jones YM00 industrial average futures, -0.22%, fell 79 points, or 0.2%, to 33,804. S&P 500 ES00 futures, + 0.01% fell 0.15 points to 4,178.75. Nasdaq-100 NQ00 futures, -0.17%, fell 25.50 points, or 0.2%, to 13,927.50. On Tuesday, major benchmarks were largely in a holding pattern, with the Dow DJIA, + 0.01%, posting a gain of 3.36 points, or less than 0.1%, at 33,984.93, while the S&P 500 SPX , -0.02% lost less than 0.1%. and the Nasdaq Composite COMP, -0.34% lost 0.3%. What drives the market? Stocks have struggled for direction this week, with major benchmarks trading near all-time highs, despite strong earnings and economic data, as investors weigh how much good news is already taking into account in the market. The Fed is expected to leave the policy unchanged when a two-day policy meeting concludes. While the central bank and Fed Chairman Jerome Powell are expected to acknowledge the strengthening of the economy, policymakers are also expected to remain committed to keeping the policy setting flexible. Market participants, however, “are ready to pounce on the slightest hint of policy normalization amid an economic recovery that is gaining more and more traction,” said Han Tan, market analyst at FXTM, in a note. “As long as the Fed leaves the policy setting as it is today, US stocks are more likely to escalate to new peaks.” Read: Debt Markets Receive Memo on Path of Likely Fed Rate Hikes The Fed will release its policy statement at 2pm ET, and Powell’s press conference will begin at 2:30 pm Need to know: Fed stands aside as home Prices rise higher, but here’s what could get in the way Largely positive results from a number of major tech companies and other corporate heavyweights at the last minute Tuesday and Wednesday, and more to come as one of the busiest weeks of earnings season continues. Biden, in a speech at a joint session of Congress, is ready to detail a plan that would see new spending on education, childcare and paid leave while extending some tax breaks. Read: Biden to Unveil $ 1.8 Trillion Family Spending Plan Calling for Increased Capital Gains Tax To partially pay for the plan, Biden will propose raising the top tax rate for the richest Americans from 37% to 39.6 % and would raise the capital gains tax rate for people making more than $ 1 million a year from 20% to 39.6%. The tax changes are forecast to raise $ 1.5 trillion in 10 years. March goods trade data is due by 8:30 am ET. Shares of Dow component Microsoft Corp. MSFT, + 0.16% fell 2.5% in pre-market trading after generating earnings Tuesday night that easily beat Wall Street forecasts. Shares of Alphabet Inc. GOOG, -0.84% ​​GOOGL, -0.82% rose 5% after parent Google posted record profits for the third consecutive quarter during the pandemic. Advanced Micro Devices Inc. AMD, -0.23% Tuesday night said data center revenue more than doubled as it reported results that beat Wall Street estimates. The shares were up 4.5%. Shares of Starbucks Corp. SBUX, + 0.20% fell 1.5% after the retail coffee chain reported mixed fiscal gains in the second quarter, with sales slightly below expectations. Shares of Boeing Co. BA, + 0.43% fell more than 1% after the aircraft maker and the Dow component reported a larger-than-expected loss. AMC Entertainment Holdings Inc. AMC shares, -0.35%, rose slightly in premarket stock, after the theater chain Tuesday night revealed plans to sell up to 43 million shares in an offering at the market, but said he would not ask shareholders. approve the potential sale of 500 million more shares. Shares of Amgen Inc. AMGN fell 4% after the company said earnings declined in the first quarter due to lower sales as the COVID-19 pandemic continued to affect patient visits and the diagnosis of new patients. Shares of Visa Inc. V, -0.19%, rose 1.3% after the Dow component beat expectations with its latest quarterly results and posted a return to growth in credit transactions. Shares of Mondelez International Inc. MDLZ, -0.09%, rose 2.4% after the maker of Oreos and other food and beverages reported first-quarter earnings and sales above expectations. Yum Brands Inc. YUM shares, + 0.63%, rose 1.6% after the global fast food company beat first-quarter earnings and revenue expectations. Six Flags Entertainment Corp. SIX, + 2.27% shares rose 2% after the theme park operator reported a minor loss in the first quarter that beat expectations, and a less-than-expected drop in revenue as attendance was more than double what was anticipated. What are other markets doing? The yield on the 10-year Treasury BX: TMUBMUSD10Y rose 2.2 basis points to 1.637%. Yields and bond prices move in opposite directions. ICE’s US dollar DXY index, + 0.12%, a measure of the currency against a basket of six major rivals, was up 0.2%. Oil futures moved higher, with US benchmark CL00, + 1.03% up 0.8% GC00 gold futures, -0.62% moved lower, falling 0.7% to $ 1,766.50 an ounce . In global equities trading, the Stoxx Europe 600 SXXP index, + 0.06% was up 0.1%, while London’s FTSE 100 UKX, + 0.52% gained 0.5%. The Shanghai Composite SHCOMP, + 0.42% and Hong Kong’s Hang Seng HSI Index, + 0.45% each rose 0.4%, while Japan’s Nikkei 225 NIK, + 0.21% gained 0 ,two%.