Traders work on the floor of the New York Stock Exchange during morning trading on April 29, 2024 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
S&P 500 futures slipped Tuesday night as investors looked ahead to the Federal Reserve’s rate policy decision.
Futures linked to the broad market index slipped 0.26%, while Nasdaq 100 futures dropped 0.50%. Dow Jones Industrial Average futures ticked lower by 16 points, or 0.04%.
In after-hours trading, Amazon advanced more than 2% following better-than-expected earnings and revenue in the first quarter. Chipmaker Advanced Micro Devices tumbled 7.5% after issuing an in-line revenue forecast for the current quarter, while Super Micro Computer slid 11.4% as revenue came in slightly below the Street’s consensus estimates.
During Tuesday’s main trading session, the Dow and S&P 500 both shed more than 1%. The tech-heavy Nasdaq Composite declined 2%. Bond yields jumped after the first quarter’s employment cost index came in higher than anticipated, reigniting worries that the Fed will keep interest rates high.
The month ended on a sour note for all three major averages, with the S&P 500 and the Nasdaq posting losses of more than 4% in April. The Dow fell 5% for its worst monthly performance since September 2022.
Traders are now looking toward the Fed’s interest rate decision on Wednesday afternoon. With the central bank widely expected to hold interest rates steady, according to fed funds futures pricing data, Wall Street will be looking for clues from Fed Chair Jerome Powell on what needs to happen before rates can come down.
“The concern is that the Fed will definitely be slower to lower interest rates,” said CFRA chief investment strategist Sam Stovall. “They realize that inflation is remaining fairly sticky. I think they want to just take more of a ‘wait and see’ approach, and wait for the inflation numbers to start coming back down again.”
Several notable earnings reports are also scheduled for release Wednesday. Pfizer, Kraft Heinz and CVS Health are reporting their quarterly results before the bell. Qualcomm and DoorDash will report on Wednesday afternoon.
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading.
Starbucks — Shares slipped almost 10% in extended trading after the coffee chain missed fiscal second-quarter estimates on the top and bottom line. Starbucks earned 68 cents per share on revenue of $8.56 billion, and missed the forecast from analysts polled by LSEG of 79 cents per share for earnings and $9.13 billion for revenue.
Pinterest — Shares surged nearly 19% following an earnings and revenue beat in the first quarter. Pinterest reported adjusted earnings of 20 cents per share, topping forecasts for 13 cents per share, according to LSEG. Revenue growth also accelerated in the quarter.
Super Micro Computer — Shares dropped nearly 8% after Super Micro Computer posted fiscal third-quarter revenue of $3.85 billion, missing the $3.95 billion consensus estimate, according to LSEG. Adjusted per-share earnings of $6.65 topped the per-share estimate of $5.78. The company also issued strong fourth-quarter revenue guidance.
— Hakyung Kim
