Stock futures ticked up in overnight trading as traders await the Federal Reserve’s latest interest rate decision, scheduled to be announced Wednesday afternoon.
Futures on the Dow Jones Industrial Average rose by 66 points, or 0.21%. S&P 500 futures gained 0.55% and Nasdaq 100 futures increased 1.06%. Shares of Enphase Energy gained about 6% after the bell on solid quarterly earnings. Chipotle also added 8% in after-hours trading following its mixed second-quarter earnings release.
Stocks slumped Tuesday as earnings season continued. Walmart cut its earnings forecast, sending other retailers such as Kohl’s, Target, Macy’s, Nordstrom and Ross Stores lower on fears that high inflation has prompted consumers to pull back on discretionary spending.
Companies reported mixed earnings, showing how they’re grappling with headwinds such as economic uncertainty, foreign exchange pressures, supply chain disruptions and high inflation. General Motors shares dipped after the auto giant missed Wall Street’s earnings estimates. Coca-Cola, McDonald’s, 3M and General Electric jumped on solid results.
“The stubbornness of inflation could turn out to be a problem,” Dennis Lockhart, an economist and former president of the Federal Reserve Bank of Atlanta, said on CNBC’s “Fast Money” on Tuesday.
There are more 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 afternooon. Markets widely expect a three-quarter percentage point increase in the benchmark rate.