Stock futures were relatively flat on Tuesday night as investors awaited the Federal Reserve’s interest rate decision and May’s consumer inflation data. Futures tied to the Dow Jones Industrial Average slipped slightly, while S&P 500 futures and Nasdaq 100 futures saw small gains. Oracle saw a jump in its stock price in extended trading after announcing cloud deals with Google and OpenAI.
During Tuesday’s trading, investors saw a rotation into Apple, which helped lift the S&P 500 and Nasdaq Composite to new closing highs. The Dow was the outlier, losing ground compared to the other major averages. Apple’s announcement of its push into artificial intelligence at its developer conference fueled a rally in its stock. Investors are now looking ahead to Wednesday’s conclusion of the Fed’s two-day policy meeting, where a rate policy decision and a press conference with Fed Chair Jerome Powell are expected.
The market is anticipating that the Fed will maintain its benchmark overnight borrowing rate in a range between 5.25%-5.5%, but investors will be paying close attention to updates in the Fed’s Summary of Economic Projections, which could provide clarity on the path for policy. Concerns have been growing among investors that a strong jobs report and sticky inflation could support a higher-for-longer interest rate environment. Any mention of concerns regarding the labor market by Powell could prompt a shift in rates, according to Quincy Krosby, chief global strategist for LPL Financial.
In addition to the Fed’s decision, May’s consumer price index data is set to be released on Wednesday morning. Forecasts predict a slight 0.1% increase from April and a 3.4% rise on a year-over-year basis. This data will offer insight into the broader measure of goods and services costs, providing further context for investors to analyze the current economic environment. Overall, the market is awaiting key information from both the Fed and economic data to help guide their investment decisions in the coming days.
