Traders work on the trading floor of the New York Stock Exchange on May 17, 2024.
Brendan McDermid | Reuters
Stock index futures oscillated near flat lines late Tuesday as investors awaited the Federal Reserve’s interest rate decision and consumer inflation data for May.
Futures and Dow Jones Industrial Average Down 9 points, or 0.02%. S&P 500 Index Futures rose 0.04%, while Nasdaq 100 Futures Add 0.1%.
In an extension transaction, Oracle The company’s shares rose 9% as traders focused on the software maker’s newly announced cloud deals with Google and OpenAI and ignored the company’s latest quarter missteps.
Investors turned to Apple in Tuesday’s trading, helping the S&P 500 and Nasdaq Composite hit new closing highs. The iPhone maker announced a move into artificial intelligence at its developer conference this week, boosting the stock. The Dow Jones was the standout performer among the three major stock indexes, falling 0.31%.
Investors are eyeing the end of the Federal Reserve’s two-day policy meeting on Wednesday, which will lead to an interest rate policy decision and a subsequent press conference with Fed Chairman Jerome Powell.
While market pricing suggests the Fed will keep its benchmark overnight borrowing rate in a range of 5.25%-5.5%, markets will be watching for an update from central bank officials on their summary of economic forecasts, which could clarify the policy path. Investors are increasingly worried that recent strong employment reports and sticky inflation will support a longer-term higher interest rate environment.
Quincy Krosby said: “Markets will be watching for any mention of labor market concerns in the Fed statement, dot plot or Chairman Powell’s comments, as Powell said signs of deterioration could prompt interest rates to ease.” Chief Global Strategist, LPL Financial.
May’s consumer price index, a broad measure of the cost of goods and services, will also be released Wednesday morning. The report predicts growth of just 0.1% from April and a 3.4% annual increase.
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