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U.S. stock futures were little changed on Tuesday night as traders looked ahead to the central bank’s interest rate decision.
S&P 500 futures were marginally higher, while Nasdaq 100 futures added less than 0.1%. Futures tied to the Dow Jones Industrial Average were up just 47 points, or about 0.1%.
During the day’s regular session, the Dow climbed to new intraday and closing highs, ultimately gaining 328.64 points, or 0.64%. The blue-chip index crossed over 52,000 for the first time during the trading session, but ultimately closed a hair below the level. On the other hand, the S&P 500 and Nasdaq Composite shed 0.57% and 1.15%, respectively.
SpaceX shares continued their winning ways, closing up more than 4% in Tuesday’s session. Elon Musk’s space company is up almost 50% from its initial public offering price of $135 a share. The stock extended gains in after-hours trading, last up 2%.
The moves came after all three major averages rose on Monday, following an announcement from President Donald Trump that the U.S. and Iran had reached a potential deal to end the war. Pakistani Prime Minister Shehbaz Sharif said that both sides have terminated their military operations, while an official signing ceremony will take place in Switzerland this Friday.
“I think we’re in pretty good shape here for a solid finish to the quarter, and then, as we go into the second half, color us constructive,” said Scott Chronert, head of U.S. equity strategy at Citi Research, on CNBC’s “Closing Bell: Overtime” on Tuesday afternoon.
The strategist said that he still expects leadership out of the artificial intelligence infrastructure cohort going into the second quarter reporting period. “With oil prices beginning to come off here as we get closer to an Iran conflict resolution, I think we can see the Fed moving to the sidelines,” he said.
“What this ultimately does is extend the broadening playbook, which has been underway for the past month or so, all of which gives us, in our view, a path higher as we go into the back half of the year,” Chronert said.
Wednesday’s Federal Open Market Committee meeting marks the first one with new Chairman Kevin Warsh at the helm of the U.S. central bank. Investors are largely expecting that the Fed will keep interest rates unchanged at a target range of 3.5% to 3.75%. However, most Wall Street Fed watchers anticipate that Warsh won’t submit a “dot” to the FOMC’s quarterly update of where individual officers expect rates to head from here.
CarMax and Jabil are set to report earnings before Wednesday’s opening bell. Traders will also watch out for May’s retail and pending home sales readings.
49 Min Ago
Asia-Pacific markets set to open mixed with focus on Fed rate decision
Asia-Pacific markets were set to open mixed on Wednesday amid easing tensions in the Middle East, while traders await the U.S. central bank’s interest rate decision.
Japan’s Nikkei 225 was poised to decline after hitting a record intra-day high Tuesday, with the Chicago futures contract at 69,160 and its Osaka counterpart last traded at 69,110, compared with the index’s previous close of 69,404.50.
Hong Kong Hang Seng index futures were last at 24,510, higher than the index’s last close of 24,493.95.
Futures for Australia’s S&P/ASX 200′s traded at 8,894, while the index closed at 8,917.70.
U.S. President Donald Trump said Tuesday that he will be open to sharing details of a new U.S.-Iran peace deal with Congress, after some key Congress members called for an opportunity to review the deal before it is finalized.
The preliminary deal between the U.S. and Iran will extend the ceasefire between the two for 60 days and create a framework for future negotiations over Iran’s nuclear program and other issues.
—Justina Lee
46 Min Ago
Seven of the 11 GICS sectors end Tuesday’s session higher
On Tuesday, seven of the 11 GICS sectors ended the session higher.
The financials sector was the day’s outperformer, rising 1.49%. It was followed by utilities and industrials stocks, which respectively climbed 0.69% and 0.67%.
On the other hand, information technology stocks were the session’s laggard, with the sector dropping 2.32%. Energy and consumer discretionary stocks respectively lost 0.25% and 0.11%, while the health care sector ending marginally lower, slipping 0.02%.
— Lisa Kailai Han
2 Hours Ago
This week’s earnings calendar
These are some of the companies reporting earnings for the rest of the week:
— Lisa Kailai Han
2 Hours Ago
Stock futures open little changed
Stock futures opened near flat on Tuesday night.
Shortly after 6 p.m. ET, futures tied to all three major indexes were trading little changed.
— Lisa Kailai Han
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