U.S. stock futures traded near flat on Tuesday night, as traders brace for the Federal Reserve’s rate policy decision due Wednesday afternoon.
Futures tied to the Dow Jones Industrial Average slipped 7 points, or 0.02%. S&P 500 futures added 0.01%, while Nasdaq 100 futures ticked up 0.02%.
In the face of mounting conflict between Israel and Iran, during Tuesday’s regular session the Dow Jones Industrial Average shed 299.29 points, or 0.70%. The S&P 500 slipped 0.84%, while the Nasdaq Composite lost 0.91%. Oil futures also ended the session up by more than 4%, keeping stocks under pressure.
Declines in stocks came before the Federal Reserve’s rate decision, which is due Wednesday afternoon. The U.S. central bank is widely expected to hold rates steady, but investors will be keeping a close eye on Fed Chair Jerome Powell’s post-meeting comments. Traders are also watching for policymakers’ forecast on rate policy, as the Federal Open Market Committee will be sharing members’ “dot plot” of rate expectations.
Tensions in the Middle East continue to cast an overhang on investors. On Tuesday, President Donald Trump took to his Truth Social platform to threaten Iran’s leader, saying that “our patience is wearing thin” and calling for “UNCONDITIONAL SURRENDER!” Current and former administration officials also told NBC News that Trump is weighing options on Iran, including whether to launch a military strike.
With this in mind, Adam Crisafulli, founder of Vital Knowledge, said that equity markets are looking especially vulnerable these days.
“Even before the events in the Middle East, there was just so much risk on the horizon, and we have valuations that are very elevated so you don’t have a lot of flexibility,” he said Tuesday on CNBC’s “Closing Bell,” noting that tariffs, fiscal uncertainty and the debt ceiling are among the factors that are up in the air. “There’s not a lot of capacity priced in to absorb all this uncertainty.”
Data to be released Wednesday also includes May’s housing starts and preliminary building permits, which should give a glimpse behind the curtain on the state of the U.S. housing market. Weekly jobless claims are also due. The stock market will be closed Thursday for the Juneteenth holiday.
Energy was the only positive sector on Tuesday
During Tuesday’s trading session, energy was the only sector that ended the day higher.
The sector gained 1.03% on the back of rising tensions in the Middle East.
On the other hand, the health care sector fell 1.64% and was the worst-performing cohort. Health care stocks, alongside materials and consumer discretionary stocks, are now more than 10% of their 52-week highs.
— Christopher Hayes, Lisa Kailai Han
Apple weighed the S&P 500 lower on Tuesday
During Tuesday’s trading session, iPhone maker Apple weighed the S&P 500 lower.
Here were the most positive and negative components of each of the three major indexes during the session, and their respective impacts:
S&P 500
- Most Positive: Chevron, +0.06 points
- Most Negative: Apple, -0.48 points
- Most Positive: Chevron, +17 points
- Most Negative: Amgen, -34 points
— Christopher Hayes, Lisa Kailai Han
Stock futures slip marginally
Stock futures traded slightly lower on Tuesday night.
Dow futures slipped just around 0.1% shortly after 6 p.m. ET. S&P 500 futures shed more than 0.1%, as did Nasdaq 100 futures.
— Lisa Kailai Han