Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, December 9, 2021.
Brendan McDermid | Reuters
U.S. stock futures were little changed on Tuesday night, as investors looked to the Federal Reserve̵[ads1]7;s meeting minutes for clues about the pace of future rate hikes.
Dow Jones Industrial Average futures rose 14 points, or 0.05%. S&P 500 futures rose 0.03%, while Nasdaq 100 futures fell 0.06%.
Shares of Nordstrom fell more than 8% in extended trading after the department store chain confirmed its forecast. However, Nordstrom beat profit and sales expectations in its latest results, according to consensus expectations at Refinitiv.
The Dow Jones Industrial Average rose nearly 400 points, or about 1.2%, during the regular session Tuesday. The S&P 500 rose 1.36%, closing above the 4,000 level for the first time since September. Meanwhile, the Nasdaq Composite rose 1.36 percent.
Investors shrugged off fears of further lockdowns in China after the country reported its first Covid deaths since May. Instead, traders focused on some strong earnings reports, betting on the likelihood of an easing of monetary policy from the Fed going forward.
“Remaining optimistic for investors is driving the rally in this market,” Eugene Profit, CEO of Profit Investments, said Tuesday on CNBC’s “Closing Bell: Overtime.”
“Going into the next Fed meeting, I think the Fed will probably moderate their language a little bit, and I think investors want to remain optimistic and ignore a lot of headwinds in this market,” he added.
On the economic front, investors will review the latest Fed meeting minutes on Wednesday to gain insight into the central bank’s approach to monetary policy ahead of the December meeting.
Earlier in November, the central bank approved a fourth consecutive increase of 0.75 percentage points, which brought interest rates to their highest level since 2008. Economists predict a rise of half a percentage point in December, and smaller rate increases next year.
In addition, investors will analyze the latest data on jobless claims. Economists polled by Dow Jones forecast claims of 225,000 for the week ending Nov. 19, up slightly from the 222,000 initial claims the week before.
They also expect the latest data on durable goods and new home sales in October. Durable goods in October are expected to have risen 0.5% from the previous month, according to estimates from Dow Jones.
The markets will be closed on Thursday for Thanksgiving and will close early on Friday.
Correction: An earlier version of this story was corrected to reflect that Nordstrom confirmed its forecast.