US futures hit pause with Fed in focus, Amazon earnings on deck
US stocks hit pause on Tuesday as investors marked time ahead of the Federal Reserve’s rate decision, with earnings from Amazon (AMZN) on deck to test prospects for a further Big Tech-fueled rally.
Futures on the S&P 500 (^GSPC) and the tech-heavy Nasdaq 100 (^NDX) slipped roughly 0.1% after closing with small gains. Dow Jones Industrial Average (^DJI) futures wavered below the flatline.
Stocks have fought to make headway in a week where Fed worries have proved a counterweight to better-than-expected quarterly results, with surprises from the likes of Paramount (PARA) and Tesla (TSLA) playing their part.
Investors are bracing for policymakers to hold interest rates at historically elevated levels at the Fed’s two-day meeting, set to start on Tuesday. The prospect of rate cuts has retreated dramatically since the start of the year, helping drive up Treasury yields — a familiar systemic problem for stocks. The yield on the 10-year Treasury (^TNX) held near six-month highs around 4.63% early Tuesday.
Amazon’s results after the bell will be closely watched after Microsoft (MSFT) and Alphabet’s (GOOG, GOOGL) stellar earnings lifted hopes for a “Magnificent Seven” boost this season. So far, Big Tech results have both impressed Wall Street and revealed its impatience with heavy AI spending.
Highlights on the early earnings docket are Coca-Cola (KO) and McDonald’s (MCD), with AMD (AMD) and Starbucks (SBUX) also coming after the markets close.
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