Stock futures mixed ahead of Fed decision
Stock futures were mixed early Wednesday as traders awaited the latest monetary policy decision from the Federal Reserve later this afternoon.
Near 7:55 a.m. ET, Dow futures were down 0.3%, S&P 500 futures were down 0.2%, while Nasdaq futures were higher by less than 0.1%.
On Tuesday, stocks capped a strong start to the year with the S&P 500 posting its best January since 2019, while the Nasdaq 100 posted its strongest January rally since 2001, up more than 10%.
Wednesday’s lackluster trading comes ahead of this afternoon’s much-anticipated policy announcement from the Federal Reserve, the central bank̵[ads1]7;s first of the year.
Wall Street expects the Fed to announce a 0.25% increase in its benchmark interest rate, marking the second meeting in a row. The Fed slows down the pace of interest rate increases.
The Fed’s policy statement is due to be released at 2:00 PM ET, with Fed Chair Jerome Powell scheduled to hold a press conference beginning at 2:30 PM ET.
Earnings season also remains in full force, with another disappointing quarter from Snap ( SNAP ) last night garnering most investor attention.
Shares in the social media company fell as much as 15% in premarket trading after the company told investors that its internal forecasts assume revenue in the current quarter will fall between 10% and 2% from a year ago.
Match Group ( MTCH ) and EA ( EA ) shares were also lower early Wednesday after reporting disappointing quarters on Tuesday afternoon.
Peloton ( PTON ) shares rose more than 4% early Wednesday after the company reported that cash spending fell to $94 million in the latest quarter, down from $747 million nine months ago. On an adjusted basis, the company reported $8 million in free cash flow in the holiday quarter.
“If you’ve been wondering whether or not Peloton can make an epic comeback, this quarter’s results show that the changes we’re making are working,” CEO Barry McCarthy wrote in a letter to shareholders.
Wednesday’s earnings highlight comes after the market closes when Meta Platforms ( META ) issues its quarterly report.
On the economic data side, new data on private wage growth from ADP showed private employers added 106,000 jobs last month, fewer than the 170,000 expected by economists.
In its report, ADP said the weather affected the measurement of the labor market, citing flooding in California and snowstorms in central and eastern parts of the country during the reference week.
“In January, we saw the impact of weather-related disruptions on employment in our benchmark week. Hiring was stronger in other weeks of the month, in line with the strength we saw late last year,” said ADP Chief Economist Nela Richardson.
Investors will also keep a close eye on manufacturing activity readings from S&P Global and the Institute for Supply Management later this morning.
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