In the backdrop of a recent market downturn triggered by apprehensions of prolonged interest rate hikes, U.S. stock index futures showed a modest uptick in evening trading on Tuesday. This movement suggested a potential stabilization on Wall Street following a series of substantial losses.
However, the sentiment remained delicate amidst ongoing geopolitical tensions in the Middle East and consistent reaffirmations of the Federal Reserve’s stance on maintaining stable interest rates.
At 19:37 ET (23:37 GMT), S&P 500 Futures edged up by 0.2%, reaching 5,103.0 points, while Nasdaq 100 Futures also increased by 0.2%, touching 17,924.50 points. Dow Jones Futures followed suit, rising by 0.2% to 38,125.0 points.
Mixed Close on Wall Street as Powell’s Remarks Influence Confidence
Wall Street closed with mixed results on Tuesday, with positive earnings reports being offset by Federal Reserve Chair Jerome Powell’s indication that recent signs of persistent inflation have reduced the central bank’s inclination to initiate early interest rate cuts.
Powell’s statements followed robust inflation and retail sales figures for March, indicating that inflationary pressures are likely to persist above levels deemed comfortable by the Fed. Consequently, expectations for a rate cut in June were largely diminished among traders.
The S&P 500 experienced a 0.2% decline, settling at 5,051.41 points, while the NASDAQ Composite also saw a slight dip of 0.1%, concluding at 15,865.25 points. In contrast, the Dow Jones Industrial Average emerged as the sole gainer, climbing by 0.2% to 37,798.97 points, buoyed by the strong performance of UnitedHealth Group Incorporated (NYSE: UNH) following its robust first-quarter earnings.
Tech Sector Provides Resilience Amidst Market Volatility
Amidst the market’s volatility, gains in major technology stocks provided some stability on Tuesday. Microsoft Corporation (NASDAQ: MSFT), the leading stock on Wall Street, saw a 0.2% increase after announcing a $1.5 billion investment in Abu Dhabi AI firm G42. Microsoft’s positive momentum extended into after-hours trading, with a further rise of 0.4%.
This development spurred gains in other AI-related stocks, with NVIDIA Corporation (NASDAQ: NVDA) witnessing a 0.6% uptick in aftermarket trading, following a 1.6% surge during the session.
Earnings Season Bolsters Market Sentiment
Positive first-quarter earnings reports also contributed to bolstering market sentiment. Morgan Stanley (NYSE: MS) experienced a 0.2% increase in aftermarket trading, surpassing expectations with a stronger-than-anticipated quarterly profit.
Similarly, UnitedHealth registered a 0.2% rise after a remarkable 5.3% surge driven by strong earnings.
The momentum of the earnings season is poised to continue on Wednesday with anticipated reports from Dutch chipmaking major ASML Holding NV (NASDAQ: ASML) and healthcare giant Abbott Laboratories (NYSE: ABT).
