Disappointing tech tidings appear to be weighing down on the market, with the Nasdaq futures diving in early trading on Wednesday while the Dow futures were barely holding up. Earnings from the likes of Advanced Micro Devices, Inc. (NASDAQ:AMD), Microsoft Corp. (NASDAQ:MSFT), and Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) have triggered negative reactions, with the former two reacting to softish guidance, while the latter came under pressure due to weakness in its bread-and-butter ad revenue.
Traders may also look to bide time to see off the Federal Reserve’s rate decision due Wednesday. Investors will likely turn their attention to the policy statement as they seek clues on the potential timing and scale of future rate cuts, said Comerica Chief Investment Officer John Lynch. A pause decision at the January meeting now appears to be a foregone conclusion.
Cues From Tuesday’s Trading:
Stocks closed mixed on Tuesday as traders digested the earnings flow from before the market open and awaited key tech earnings reports due after the close. They also reacted to positive job market, housing and consumer confidence readings.
As traders pushed back their rate cut expectations following a string of positive Main Street data, financial stocks rallied, keeping the Dow Industrials in the green. The 30-stock blue-chip average ended at a fresh high on Tuesday. On the other hand, the S&P 500 retreated from a closing high hit on Monday, and the Nasdaq Composite also experienced weakness.
Among the S&P sector indices, communication services, IT, and real estate stocks retreated on Tuesday, while energy and financial stocks gained some ground.
US Index Performance On Tuesday
|S&P 500 Index
“When the S&P 500 goes more than a year without hitting new highs, the Index generally performs well over the next 12 months,” said Comerica’s Lynch.
“In eight of the nine previous instances, the S&P has marched higher over the next twelve months, delivering an average return of 12.1%. Additionally, new highs tend to come more quickly with the Index setting record closes an average of 37…