Dow Jones futures experienced a slight decline after hours, with S&P 500 futures and Nasdaq futures also falling moderately. Key earnings reports from Amazon.com, Super Micro Computer, and Advanced Micro Devices were in the spotlight, while investors were eagerly anticipating the Fed meeting announcement scheduled for Wednesday afternoon.
The stock market rally made a sharp retreat amid concerns over rising inflation triggered by a hot employment cost index. Major indexes were facing resistance and were waiting for the outcome of the Fed meeting, along with important earnings and economic data releases.
Eli Lilly saw a jump in stock price following its earnings report on Tuesday, coming close to an early entry point. On the other hand, Tesla experienced a decline due to fresh layoffs, although the stock had shown significant gains over the past week.
In the post-market session, Amazon’s stock saw a slight rise after its earnings report, despite weak guidance. Super Micro and AMD stocks faced a sell-off with volatile trading. The performance and guidance of Super Micro and AMD are crucial for other AI chipmakers like Nvidia.
Other companies such as TransMedics, Powell Industries, and Pinterest also reported earnings late. TransMedics’ stock surged on earnings, while Pinterest saw a significant increase, crossing key technical levels. Powell Industries, which has AI-related exposure, also showed strong performance in response to its earnings report.
The market action on Tuesday indicated a risk-off sentiment, with a decline in oil prices, copper futures, and Bitcoin. Treasury yields also saw an increase, reflecting market dynamics surrounding the Fed rate outlook.
In terms of ETF performance, growth-focused ETFs like ARK Innovation saw a decline, while sector-specific ETFs for technology, semiconductors, and metals also experienced losses.
Looking ahead, investors were preparing for Wednesday’s earnings reports from companies like Neurocrine Biosciences, Generac Holdings, and Carpenter Technology. Moreover, updates on April deliveries from Chinese EV makers like Li Auto, Nio, and XPeng were also awaited.
In conclusion, the current market environment is characterized by uncertainty and cautiousness. It is advisable for investors to maintain watchlists, update exit strategies, and be prepared to act based on market conditions. Staying informed about market trends and company-specific developments is essential for making informed investment decisions.
