U.S. equity futures are little changed ahead of an unusually uncertain Federal Reserve decision and earnings from Microsoft and Meta. Early Wednesday, S&P 500 futures were up 0.2%, Dow futures were up 0.1% and Nasdaq 100 futures were down 0.1%. The Russell 2000 enters the session after gaining 0.2% Tuesday, supported by continued rotation away from semiconductors and into financials, health care and other less-expensive areas of the market.
U.S. equities finished mixed Tuesday. The S&P 500 gained 0.2%, the Dow rose 1.0%, the Nasdaq declined 0.2% and the Russell 2000 advanced 0.2%. Boeing and Coca-Cola supported the Dow, while the Philadelphia Semiconductor Index fell 4.5% and extended its decline to roughly 25% from its June high. Total U.S. exchange volume was 17.2 billion shares, close to the recent 20-session average of 17.4 billion.
Sector performance showed another pronounced rotation away from Technology. Health Care led with a 2.33% gain, followed by Consumer Staples +1.96%, Materials +1.66%, Communication Services +1.64%, Financials +1.18%, Consumer Discretionary +0.95% and Real Estate +0.36%. The laggards were Energy -1.40%, Technology -1.17%, Industrials -0.41% and Utilities -0.36%.
Market breadth was positive but uneven. Advancers led decliners by 1.73:1 on the NYSE, while Nasdaq breadth was slightly negative at 1.02:1. The split reinforces the broader market message: participation is improving outside semiconductors, but the Technology-heavy Nasdaq remains constrained by AI valuation and capital-spending concerns.
Treasury yields declined as falling oil prices eased some near-term inflation pressure. The 2-year yield fell 5 basis points to 4.27%, the 10-year declined 5 basis points to 4.60% and the 30-year dropped 4 basis points to 5.09%. Yields are edging higher this morning, with the 10-year near 4.61%, after renewed Middle East fighting pushed oil higher.
The DXY fell 0.14 to 101.39 Tuesday, while the euro strengthened to $1.1388, sterling was unchanged near $1.3289 and the dollar rose modestly to ¥163.87. Early Wednesday, the dollar index was near 101.33, the euro traded around $1.1395 and the yen strengthened slightly to approximately ¥163.55.
September WTI crude fell 4.21% Tuesday to $79.13, while August gold declined 1.32% to $4,023.20. Oil reversed sharply higher Wednesday after renewed U.S.-Saudi strikes in Iraq and an intercepted Iranian attack on U.S. forces. WTI was up approximately 3.5% near $82.06, while Brent traded around $87.13. Spot gold recovered modestly to roughly $4,036 ahead of the Fed decision.
July consumer confidence slipped to 90.8 from 92.2, missing expectations for an improvement, as household assessments of current business and labor-market conditions weakened. The June goods trade deficit narrowed 4.2% to $101.5 billion, though economists still expect trade to subtract from second-quarter GDP growth.
The Federal Reserve announces its policy decision at 2:00 p.m. ET, followed by Chair Kevin Warsh’s press conference at 2:30 p.m. Markets assign roughly a 30% probability to a 25-basis-point increase and a 70% probability that the Fed maintains its 3.50%–3.75% target range. The EIA petroleum inventory report is due at 10:30 a.m. ET.
Company News by GICS Sector
Information Technology
- Microsoft (MSFT) reports after the close. Options imply a move of roughly 6.6% in either direction, equivalent to approximately $190 billion in market value. Azure growth, Copilot adoption, AI capital spending and free-cash-flow conversion will be the principal focus.
- Corning (GLW -12.0%) fell Tuesday after issuing a weaker-than-expected sales forecast, making it one of the session’s largest S&P 500 decliners.
- SK Hynix fell 9.6% in South Korea despite reporting a sixfold increase in quarterly profit, as results failed to clear elevated AI-memory expectations.
Communication Services
- Meta Platforms (META) reports after the close. Options imply a move of approximately 7.8%, with investors focused on advertising growth, AI-driven engagement and whether returns justify the company’s expanding infrastructure budget.
Consumer Staples
- Coca-Cola (KO +5.0%) rallied after raising its annual revenue and profit targets, helping drive the Dow’s outperformance.
Industrials
- Boeing (BA +4.8%) advanced after generating positive free cash flow as aircraft deliveries improved and its operational turnaround gained momentum.
Consumer Discretionary
- Ford (F +5.4% after hours) raised its full-year adjusted earnings forecast to $10 billion–$11 billion as strong pickup-truck pricing and resilient higher-income demand offset tariff costs. Adjusted earnings exceeded expectations despite a decline in quarterly revenue.
- Starbucks (SBUX) and Chipotle Mexican Grill (CMG) are scheduled to report results, providing additional reads on restaurant traffic, pricing and discretionary spending.
Health Care
- IQVIA Holdings (IQV +14.0%) surged after raising its annual profit forecast, contributing to Health Care’s position as the strongest sector.
