Stock futures rose in trading overnight as traders await the Federal Reserve’s latest interest rate decision, which is expected to be announced Wednesday afternoon.
Dow Jones Industrial Average futures rose 36 points, or 0.11%. S&P 500 futures gained 0.46% and Nasdaq 100 futures rose 0.76%. Shares of Enphase Energy gained about 6% after the strong quarterly earnings bell. Chipotle also added 8% in after-hours trading after reporting mixed second-quarter results.
Shares fell on Tuesday as the earnings season continued. Walmart slashed its profit forecast, dragging down other retailers such as Kohl’s, Target, Macy’s, Nordstrom and Ross Stores, over concerns that high inflation could prompt consumers to cut discretionary spending.
E-commerce stocks also fell in Tuesday’s session, dragged down by inflation sentiment and news that Shopify would cut 10% of its workforce. Amazon, Square parent Block and PayPal all fell.
The companies reported mixed earnings, showing how they are grappling with headwinds such as economic uncertainty, exchange rate pressures, supply chain disruptions and high inflation. General Motors shares fell after the auto giant missed Wall Street earnings estimates. Coca-Cola, McDonald’s, 3M and General Electric jumped on strong results.
“Stubborn inflation could prove to be a problem,” Dennis Lockhart, an economist and former president of the Federal Reserve Bank of Atlanta, told CNBC’s “Fast Money” on Tuesday.
There are other major earnings reports to come. On Wednesday, Boeing and Shopify are expected to release their quarterly results before the bell. Qualcomm, Ford and Meta Platforms will report at the end of the day.
Investors are also awaiting a key announcement from the Federal Reserve. The central bank will announce its latest interest rate decision on Wednesday afternoon. Markets generally expect a three-quarter percentage point increase in the benchmark rate.