US stocks are set to open markets in the red ahead of the Federal Reserve’s interest rate decision. Futures contracts tied to the Dow Jones Industrial Average inched 208 points lower. Nasdaq 100 futures slipped 44 points ahead of earnings report by huge tech stocks. S&P 500 fell more than 20 points.
US Market Concerns
Dow Jones index nudged slightly higher on Monday after weak new home sales data for June. Economists expected the total new home sales to come in higher at 800,0000. However, the total sales for new homes in June came in lower at 676,0000. This was a 6.6% monthly decline.
US Treasury yields extended their losses ahead of the Fed’s two-day policy meeting. The yield on the benchmark 10-year Treasury note slipped to 1.253%. The yield on the 30-year Treasury bond fell to 1.905%.
Oil prices bounced back on Tuesday ahead of “Big oil” earnings review. WTI Crude advanced almost 0.2% to trade at $72.05 per barrel. Brent Crude rose more than 0.36% and was trading at $74.75 per barrel.
Investors are looking ahead to the Federal Reserve’s two-day policy meeting. The Fed is expected to announce its interest rate decision on Wednesday. The Federal Open Market Committee is also expected to issue its monetary policy statement on the same day.
According to Jerome Powell’s latest speech, the Fed is expected to maintain its interest rates until substantial inflation stability is met. According to the Fed chair, the current jump in inflation could be transitory.
The US CB Consumer Confidence for July is to be released later in the day. Analysts expect the Consumer Board to report a decline in the Consumer Confidence in July. It is expected to slip to 123.9 from the previous 127.3.
Dow Jones Market Movers
McDonald’s was the best performer in the Dow Jones premarket trade. The Fast-food company is expected to release its second-quarter earnings report on Wednesday. The company’s earnings are expected to be positive.
Intel Corporation led the laggards in the index. The semiconductor company lost more than 2.08% in its stock earnings. Intel announced its plan to become the world’s premier chip company.
Goldman Sachs slipped 1.64% in premarket trade. Goldman Sachs is an American investment banking company.
Boeing Company was also among the worst performers in the index. The company fell by more than 1.04% in its stock price. Boeing has been relying on its Dreamliner passenger jet. However, the deliveries of the 787 Dreamliner remain halted after production setbacks.