US Stock Futures Hold Up As Traders Await Meta, Microsoft Earnings — Economists Discount Dovish Fed Ahead Of Rate Decision

U.S. index futures remained just afloat early Wednesday, signaling a cautious start for Wall Street stocks. 

The market is likely to tread water ahead of the Federal Reserve’s rate decision due Wednesday and the resumption of big tech earnings with reports from Meta Platforms (META) and Microsoft (MSFT). 

Investors may also keep an eye on any developments on the trade news front as President Donald Trump’s Aug. 1 tariff deadline draws closer.

As of 1:23 a.m. ET on Wednesday, the Nasdaq 100 futures climbed over 0.20%, the S&P 500 futures and the Dow futures rose about 0.10% and the Russell 2000 futures jumped 0.38%.

On Tuesday, stocks closed lower, with the S&P 500 Index snapping its six-session record-making streak, as traders digested some mixed economic data and mostly negative earnings.

While the Conference Board’s consumer confidence index for July rose more than expected, the Bureau of Labor Statistics’ June Job Openings And Labor Turnover Survey (JOLTS) showed fewer than expected job openings for the month.

Investors also reacted negatively to the earnings reports from UnitedHealth (UNH), Boeing (BA), and UPS (UPS).

The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, edged down 0.15% and the SPDR S&P 500 ETF (SPY) slipped 0.26%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell 2000 ETF (IWM) fell 0.41% and 0.64%, respectively. 

On Wednesday, the Federal Open Market Committee (FOMC), the policy-setting arm of the Federal Reserve, is scheduled to begin a two-day meeting. While the futures market has priced in a 97.4% probability of a pause decision, investors will likely pay close attention to any dissent among members.  

ADP’s July private payrolls report, the National Association of Realtors’ pending home sales report for June, and final second-quarter GDP data are all due for the day.

WisdomTree Senior Economist Jeremy Siegel said in a recent report that he expects the Fed to hold fire this week. But he sees a clear shift toward easing, especially as inflation readings show a thawing in pricing pressure. 

Siegel expects Powell to signal a shift lower in rates at the Jackson Hole Symposium in August.

Fund manager Louis Navellier also calls for a pause, accompanied by a dovish statement from the central bank. 

Key earnings reports to watch for during the session are from Altria (MO), GE Healthcare (GEHC), GlaxiSmithKline (GSK), Humana (HUM), Kraft Heinz (KHC), Hershey Foods (HSY), Arm Holdings (ARM), Carvana (CVNA), eBay (EBAY), Ford (F), Lam Research (LRCX), Microsoft, Meta Platforms, Qualcomm (QCOM), and Western Digital (WDC). 

The West Texas Intermediate (WTI) grade crude oil futures rose further and traded above $69, while gold futures held steady around the $3,380 mark. 

After falling sharply on Tuesday, the 10-year Treasury note yield remained little changed. The U.S. dollar weakened slightly against most major counterparts. 

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