Nasdaq, S&P 500 Futures Pause As Fed Decision, Microsoft, Meta, Amazon Earnings In Focus: Why HOOD, STX, NIO, SOFI Are Keeping Traders Engaged Today

• Traders will be watching for a Federal Reserve rate decision and earnings from four “Magnificent Seven” heavyweights.
• On the geopolitical front, comments around Iran and the Strait of Hormuz are keeping an undercurrent of tension in energy markets.
• Seagate surged on a strong outlook for AI storage demand; Robinhood fell after an earnings miss.

U.S. stock futures rose early Wednesday as investors geared up for a heavy slate of Big Tech earnings from Microsoft, Alphabet, Meta and Amazon, as well as the rate decision from the U.S. Federal Reserve and Chair Jerome Powell’s last press conference later today. 

As of 4:00 a.m. ET on Wednesday: Nasdaq and Russell 2000 futures gained 0.2%, Dow futures were up 0.1%, while S&P 500 futures were flat.

Retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, has moved back to ‘bullish’ territory, while the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq-100 Index, has moderated to ‘neutral’ from ‘bearish’ a day ago, as Big Tech gears up to report earnings today. 

Trending Stocks To Watch

Microsoft (MSFT), Alphabet Inc (GOOGL), Meta Inc (META), Amazon Inc (AMZN): Investors will be watching for solid proof that massive capital expenditures on artificial intelligence are generating real revenue growth for these companies. 

SoFi Technologies (SOFI) too is trending on the retail radar ahead of its quarterly report today.

Semiconductor stocks are also in focus today. STX (Seagate Technology) shares rose another 20% in early premarket following a strong forecast that showed spending on AI storage equipment remains robust. The semiconductor sector now represents 14% of the total U.S. market cap. Keep an eye on WDC as well today.

TSM (TSMC): A filing revealed it sold its remaining stake in Arm Holdings (ARM) for approximately $231 million.

Robinhood (HOOD): Shares cracked 10% in early premarket trade after the company missed earnings estimates. Stocktwits’ Michele Steele will be in conversation with its newly appointed CFO Shiv Verma later today. 

DIS (Disney): The company is reportedly facing regulatory headwinds after the FCC ordered an early review of its broadcast licenses amid an investigation into its DEI efforts.

Baidu Inc (BIDU) shares fell 2% early premarket trade following a report that Beijing had halted new licenses for autonomous vehicle operators after dozens of Baidu Apollo Go taxis unexpectedly stopped on the streets of Wuhan last week. 

Nio Inc (NIO): Meanwhile, the battle between EV makers is growing. Shares of Nio traded 5% higher in early premarket after it opened pre-sales for its new ONVO model, priced below Tesla’s Model Y in China. Watch out for Tesla (TSLA) in trade today too. 

Alphabet Inc (GOOGL), Coreweave (CRWV) and Intellia Therapeutics (NTLA): Cathie Wood’s ARK Invest added more shares on Tuesday.

Other tickers trending on Stocktwits at the time of writing included Enphase Energy (ENPH), Rivian Automotive (RIVN), SoundHound AI (SOUN), and Akanda Corp (AKAN).

Other Catalysts To Watch

On the economic front, traders will be watching the release of the ADP Employment Change (Apr) and GDP Advance Estimate before the bell. FOMC rate decision is due at 2:00 pm ET, followed by the Fed Chair Powell’s press conference at 2:30 pm ET.

On earnings radar, watch out for quarterly reports from ETSY, AbbVie (ABBV), Amarin Corp (AMRN), among others, before the bell. Meanwhile, Ford Motor (F), Carvana (CVNA), and Viking Therapeutics (VKTX) are among others reporting earnings after market close today. 

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