Futures fall due to disappointing chip stock results and caution before the Federal Reserve decision

From WMBD Radio: 2024-05-02 03:08:47

U.S. stock index futures fell on Wednesday due to disappointing chip stock results and caution ahead of the Federal Reserve’s interest rate decision. Advanced Micro Devices and Super Micro Computer’s AI chip sales and revenue missed estimates. Other chipmakers, like Nvidia and Micron Technology, also traded in the red.

Investors await economic data to gauge inflation in the U.S. economy before the Fed’s interest rate decision. Data includes ADP National employment numbers, S&P Global final manufacturing PMI, ISM manufacturing PMI, and JOLTS job openings. Experts believe the Fed may be one of the last central banks to cut rates this cycle.

Money markets predict the Fed to keep rates steady, with only 28 bps of rate cuts expected this year. April was tough for U.S. equities, but May’s performance will be influenced by earnings reports and interest rate outlook. The market adage “Sell in May and Go Away” suggests lower returns in the summer months.

Dow E-minis were down 0.28%, S&P 500 E-minis down 0.5%, and Nasdaq 100 E-minis down 0.83%. Starbucks dropped 12% due to decreased sales forecast, while Pinterest surged 18% on strong revenue projections. Market movements will be closely watched as May begins.



Read more at WMBD Radio: Futures fall as chip stocks drag, Fed rate decision awaited