Stock futures rallied in overnight trading as traders awaited the Federal Reserve’s latest interest rate decision, scheduled to be announced Wednesday afternoon.
Dow Jones Industrial Average futures rose 66 points, or 0.21%. S&P 500 futures gained 0.55% and Nasdaq 100 futures gained 1.06%. Shares of Enphase Energy jumped about 6% after signaling steady quarterly earnings. Chipotle also added 8% in after-hours trading after announced mixed second quarter earnings.
Stocks tumbled Tuesday as earnings season continues. Walmart cut its earnings forecast, sending other retailers like Kohl’s, Target, Macy’s, Nordstrom and Ross Store alleviating concerns that high inflation has prompted consumers to pull back on discretionary spending.
E-commerce shares also fell on Tuesday, dragged lower by inflationary sentiment and news that Shopify will cut 10% of the workforce. AmazonSquare Parents Unit and PayPal all decreased.
Companies reported mixed earnings, showing how they are grappling with difficulties such as economic uncertainty, foreign exchange pressures, supply chain disruptions and high inflation. Synthetic engine Shares fell after the auto giant missed Wall Street earnings estimates. Coca-Cola, McDonald’s, 3M and General Electric jumped to solid results.
“Inflationary stubbornness could become a problem,” Dennis Lockhart, an economist and former president of the Federal Reserve Bank of Atlanta, said on CNBC.Quick money“on Tuesday.
More big earnings reports will appear. On Wednesday, Boeing and Shopify are expected to release their quarterly results before the alarm goes off. Qualcomm, Ford and Meta . Platform Will report at the end of the day.
Investors are also awaiting a major announcement from the Federal Reserve. The central bank will announce its latest interest rate decision on Wednesday afternoon. Markets expect the benchmark rate to rise three-quarters of a percentage point.
