Wall Street awaits Fed decision as Big Tech earnings loom
Futures are mixed ahead of today's 2 p.m. Fed decision, after a chip-led rally sent Asian shares higher and Microsoft and Alphabet prepare to report after the close.
US futures were mixed early Wednesday as traders positioned for the Federal Reserve’s rate decision at 2:00 p.m. ET and after-the-close earnings from Microsoft (MSFT) and Alphabet (GOOGL). Nasdaq-100 futures were the firmest, up roughly 0.3%-0.4%, while S&P 500 futures hovered near flat and Dow futures slipped about 0.2%, according to Yahoo Finance and Benzinga pre-market updates. That followed a Tuesday session in which the S&P 500 rose 0.6% to 7,722.60, the Nasdaq Composite gained 1.18% to 26,477.81, and the Dow added a fraction of a percent to 52,377.57, per CNBC and TheStreet, with chip stocks leading as the two-day FOMC meeting got underway.
Overnight, Asian markets were driven by a chipmaker rally after SK Hynix (SKHY) reported record quarterly operating profit of 83.3 trillion won (about $62.8 billion), up nearly sevenfold from a year earlier, sending its shares up more than 11% and helping South Korea’s Kospi close above 6,000 for the first time, up roughly 6.8% to 6,023.73, with a buy-side circuit breaker triggered for a second straight day, per reports carried on TradingView/Seeking Alpha and CoinDCX. Japan’s Nikkei 225 added about 1.1% to 63,954 on similar semiconductor strength, while Hong Kong’s Hang Seng was little changed, near 23,089, after paring early losses. European shares opened on a cautious note Wednesday, with trading muted as investors there also awaited the Fed outcome, per Investing Cube. Oil had eased in Tuesday’s US session, with WTI easing toward $101 a barrel and Brent near $114, as traders weighed hopes for de-escalation in the US-Iran standoff, per CNBC; the two-year Treasury yield was little changed near 4.75%.
The Fed’s statement lands at 2:00 p.m. ET, with the federal funds target range currently at 3.75%-4.00%. Tracking sites that follow CME FedWatch-style pricing, including DeFiRate and a tracker cited by TradingView, put the odds of a hold near 90%, with markets also attaching meaningful odds to a rate hike in December rather than a cut — a reminder that this cycle’s balance of risks differs from prior easing periods. After the bell, Microsoft and Alphabet report third-quarter results, adding to a packed Wednesday earnings slate; no specific consensus figures for either report were available from a current, dated source, so none are given here.
What to watch today
- The FOMC releases its rate statement at 2:00 p.m. ET, with Fed-funds futures tracked by CME FedWatch-style pricing pointing to roughly 90% odds the central bank holds its 3.75%-4.00% target range steady. (DeFiRate / TradingView)
- SK Hynix shares jumped more than 11% after a record quarterly operating profit of about $62.8 billion, helping South Korea’s Kospi close above 6,000 for the first time overnight and setting an upbeat chip-sector tone into the US session. (CNBC / CoinDCX)
- Oil eased in Tuesday’s session, with WTI near $101 and Brent near $114 a barrel, as traders weighed hopes for easing US-Iran tensions; any reversal of that move is a factor to watch through the day. (CNBC)
- Beyond Microsoft and Alphabet after the close, Wednesday’s broader earnings slate includes T-Mobile US, FedEx, Honeywell Aerospace and Carvana, among others. (Digrin earnings calendar)
Watchlist earnings today: Alphabet Inc. (GOOGL, after the close) · Microsoft Corporation (MSFT, after the close)