US stock futures were mixed on Wednesday as investors digested key technology gains and prepared for the latest Federal Reserve policy announcement.
S&P 500 futures moved above the flatline while Nasdaq 100 futures traded a little lower. Dow futures lose 23 points.
The Google parent company Alphabet reported a better-than-expected result on Tuesday after the bell and let the shares of the technology giant in the premarket trade by more than 5%. Alphabet saw sales grow 34% year over year.
Meanwhile, Microsoft shares fell about 2% in early trading, even after the company beat analyst earnings. Microsoft saw the largest revenue growth since 2018, in part due to the increase in PC revenue driven by coronavirus-induced bottlenecks last year.
AMD and Visa stocks were higher in early trading after better-than-expected results.
Starbucks lifted sentiment about the economic recovery from the pandemic and raised its full-year outlook as U.S. sales growth in the same store returned to pre-pandemic levels. However, Starbucks shares were 1.5% lower in the pre-market.
On Tuesday, the most important averages around the flatline were traded. The Dow Jones Industrial Average only rose 3 points. The S&P 500 closed flat after hitting an all-time high on Monday. The Nasdaq Composite was the relative underperformer, falling 0.34% while Tesla fell 4.5%.
Tech darlings Apple and Facebook will report their winnings on Wednesday after the bell.
“Lots of FAANGs are reporting this week and the stock market can wait for some of these key reports to be released before deciding on the next major direction,” said Jim Paulsen, Leuthold Group’s chief investment strategist.
The Fed concludes its two-day meeting on Wednesday. The central bank is not expected to take action, but economists expect it to defend its policy of temporarily heating inflation. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET, 30 minutes after the decision was announced, and those comments could move the markets.
“Any hints given in the Board of Directors’ statement or in the subsequent press conference about a possible reduction in QE – when and how quickly – would likely move both the equity and bond markets,” said Paulsen.
Boeing, Ford, Qualcomm, eBay and MGM Resorts are among the other major corporate earnings on Wednesday.
Elsewhere later on Wednesday, President Joe Biden will unveil a $ 1.8 trillion plan for new spending and tax credits aimed at helping families. The Biden government’s new spending plan would raise the highest income tax rate for the richest Americans to 39.6% and raise capital gains taxes to 39.6% for households earning more than $ 1 million, according to senior government officials. Stocks had taken a hit last week when reports of that tax hike surfaced.
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