U.S. equity futures moved in different directions early Wednesday as investors waited for a Fed rate decision and the first Big Tech earnings reports. Tuesday's chip rally and lower oil prices had lifted the major averages a day earlier.
U.S. equity futures were mixed early Wednesday as investors awaited earnings from mega-cap technology companies and a rate decision from the Federal Reserve due the same day.
S&P 500 futures inched higher and Nasdaq-100 futures rose 0.5%, while Dow futures were 0.2% lower. In Asia, Japan's Nikkei 225 closed 1.08% higher, South Korea's Kospi rose 6.63%, and mainland China's CSI 300 closed 0.85% higher.
Chip stocks lift Tuesday's session
In Tuesday's regular trading, the major averages ended the session higher. Chip stocks rose again, powered by a Broadcom announcement that a group of banks would provide $63 billion in financing to buy chips and networking solutions to be leased to Anthropic.
Broadcom rose 4%, Advanced Micro Devices climbed 5.5% and Micron Technology rose 2.8%. Those moves led the Nasdaq Composite to rise 1.2% on the session.
Lower oil prices also supported stocks. Oil fell after news that Iran's Supreme Leader Mojtaba Khamenei met with top security official Mohsen Rezaei to discuss conditions for ending the war with the U.S.
Fed decision and Big Tech earnings take focus
Wednesday's focus turns to monetary policy as the Fed wraps up its two-day meeting. The central bank is widely predicted to keep rates steady at a target range of 3.75% to 4%, after policymakers raised rates by a quarter percentage point at their September meeting.
According to CME's FedWatch tool, there is a roughly 92% chance that the Fed holds rates. Some expect Chairman Kevin Warsh to signal that more hikes are coming in future meetings, and the Fed will announce its decision at 2:00 p.m. ET.
After the bell, "Magnificent Seven" giants Alphabet and Microsoft kick off Big Tech earnings. Tech stocks, particularly those exposed to the AI buildout, have struggled in recent weeks amid questions over the technology's financing.
Morgan Stanley's chief U.S. equity strategist Mike Wilson thinks the recent recovery in tech stocks may signal the trend is nearing its end. Speaking on CNBC's "Closing Bell" on Tuesday, he said: "Most of the correction is already over".
Source: CNBC
Trading involves risk.
Risk Disclaimer
