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Stock futures inched lower Tuesday as investors await the start of June’s Federal Reserve policy meeting.
Dow Jones Industrial Average futures lost 156 points, or 0.4%. S&P 500 futures and Nasdaq 100 futures both lost roughly 0.3%.
Those moves follow a muted but notable day on Wall Street. The S&P 500 and Nasdaq Composite rose modestly to notch new record closes, while the Dow inched higher by nearly 0.2%.
This comes as traders prepare for the two-day Fed policy meeting commencing Tuesday. The meeting will conclude on Wednesday with an interest rate policy decision and a subsequent press conference featuring Federal Reserve Chair Jerome Powell.
While investors are anxiously awaiting the policy announcement, they are largely pricing in that the borrowing rate remains unchanged. Fed funds futures were indicating virtually no chance of a cut at this week’s meeting, according to CME’s FedWatch Tool.
Before the Fed decision, investors will analyze small business data due out Tuesday. On Wednesday, they will closely follow the consumer price index reading for May expected in the morning.
“We’ve got two big events coming in the middle of this week: the CPI print on Wednesday morning and the Fed meeting on Wednesday afternoon,” said Zachary Hill, head of portfolio management at Horizon Investments. “We’re kind of just biding time a little bit ahead of those.”
On the corporate earnings front, traders will monitor results from Oracle and Rubrik slated for after the bell on Tuesday.
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Elon Musk threatens to ban Apple devices from his companies amid OpenAI partnership
Tesla CEO Elon Musk on Monday threatened to ban Apple devices from his companies after the iPhone maker said it struck a deal with OpenAI.
“If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation,” Musk said in a post on X.
Apple told CNBC that the company is using its own AI, adding that its integration with OpenAI is an optional feature.
Apple shares were down slightly in the premarket. Tesla’s stock was flat.
— Fred Imbert, Ashley Capoot
S&P 500 still more than 12% above key moving average, BTIG says
The S&P 500 is still more than 12% above its 200-day moving average, and it is a spot the index historically can’t stay above for long, according to BTIG.
This figure calculates the S&P 500’s average close over the past 200 sessions. The broad index trading above that level generally means it is considered to be in an uptrend.
Since it is currently so far above the 200-day average, the S&P 500 could theoretically pull back without breaking below this key level. The S&P 500 rose to a fresh record close on Monday, bringing its year-to-date gain up to 12.4%.
“This isn’t a sell signal by itself, but historically it doesn’t spend much time above this threshold,” chief market technician Jonathan Krinsky told clients. “We remain tactically cautious here, while finding opportunistic single-name ideas.”
— Alex Harring
DXC rises on Reuters report of Apollo and Kyndryl bid
Information technology stock DXC Technology climbed nearly 4% in extended trading after Reuters reported a joint bid from Apollo Global and Kyndryl Holdings.
The businesses have reportedly talked about offering between $22 and $25 per share for DXC, according to Reuters. Apollo shares were little changed after hours, while Kyndryl slipped more than 1%.
— Alex Harring
Stock futures are little changed
Stock futures were near flat shortly after 6 p.m. ET.
Dow futures slipped nearly 0.1%. S&P 500 and Nasdaq 100 futures traded just marginally below their flatlines.
— Alex Harring