Stock futures fall ahead of big tech earnings and Fed meeting decision: Live updates
U.S. stock futures fell across the board Sunday night as Wall Street looked toward several mega-cap tech earnings reports and the Federal Reserve's rate policy decision.
Futures tied to the Dow Jones Industrial Average declined 86 points, or 0.2%. S&P 500 and Nasdaq 100 futures were down 0.2% and 0.3%, respectively.
The three major averages all rose during the previous trading week following encouraging economic data. Economic growth in the fourth quarter was stronger than expected, while core inflation on a yearly basis was lower than economists had expected, suggesting a cooldown in price increases. However, the market's gains were more muted compared to the prior week's rally after notable companies such as Intel and Tesla disappointed on the earnings front.
This week marks the busiest week of the earnings season, with 19% of the S&P 500 reporting earnings. Mega-cap tech names Microsoft, Apple, Meta, Amazon and Alphabet — part of the core group of big tech companies that have led this year's rally — will be posting their results. Investors will also keep an eye on several Dow components reporting their quarterly earnings, including Boeing and Merck.
Meanwhile, the Federal Open Market Committee will begin its two-day policy meeting on Tuesday. Investors are nearly certain the central bank will keep rates steady. Traders in the fed funds futures market assigned an almost 97% probability the Fed will not cut rates at the upcoming meeting, according to the CME Group.
Sonu Varghese, global macro strategist at Carson Group, believes "the Fed doesn't really have to worry about a hot economy stoking inflation anymore, because we literally see the opposite. The economy is running above trend and inflation is coming down. Based