The mood in the market is as sour as vinegar as disappointing tech earnings are weighing down Nasdaq futures, with barely holding Dow futures. The lackluster earnings reports from tech giants such as Advanced Micro Devices, Inc. (AMD), Microsoft Corp. (MSFT), and Alphabet, Inc. (GOOGL) have triggered a negative reaction. AMD and Microsoft are reacting to softish guidance while Alphabet is under pressure due to weakness in its ad revenue.

Investors are likely to wait on the Federal Reserve’s rate decision due Wednesday. All eyes will turn to the policy statement as they seek hints on the potential timing and scale of future rate cuts.

Diving Into Tuesday’s Trading:

On Tuesday, the stock market showed a mixed picture as traders digested the pre-market earnings flow and awaited key tech earnings reports after the close. Positive job market, housing, and consumer confidence readings also influenced traders’ actions.

Following a string of positive Main Street data, traders pushed back their rate cut expectations, leading to a rally in financial stocks and keeping the Dow Industrials in the green. The S&P 500 retreated from a closing high hit on Monday, and the Nasdaq Composite also experienced weakness.

The communication services, IT, and real estate sectors saw a retreat, while energy and financial stocks gained some ground among the S&P sector indices.

Performance of US Indices on Tuesday

Index	Performance (+/-)	Value
Nasdaq Composite	-0.76%	15,509.90
S&P 500 Index	-0.06%	4,924.97
Dow Industrials	+0.35%	36,467.31
Russell 2000	-0.76%	1,996.24

Analyst Insight:

Comerica’s Lynch noted that when the S&P 500 fails to hit new highs for over a year, the Index typically performs well over the next 12 months. Historically, after such periods, the S&P has seen an average return of 12.1% over the subsequent year, usually hitting record closes about 37 times, accounting for around 15% of all trading days. This historical trend supports the philosophy of “time in” the market rather than “timing” the market.

Today’s Futures:

Performance of Futures on Wednesday

Futures	Performance (+/-)
Nasdaq 100	-1.01%
S&P 500	-0.44%
Dow	+0.11%
R2K	+0.30%

In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (SPY) slipped 0.43% to $488.78, and the Invesco QQQ ETF (QQQ) slumped 1.01% to $420.99, according to Benzinga Pro data.

Upcoming Economic Data:

ADP is due to release its private payroll report for January at 8:15 a.m. ET. Economists, on average, expect the private sector to have added 145,000 in January, a decrease from December’s 164,000.

The Labor Department will release its employment cost index for the fourth quarter at 8:30 a.m. ET. The consensus estimate calls for a 1% quarter-over-quarter increase in the employment cost index compared to a 1.1% gain in the third quarter.

The Chicago Institute of Supply Management will release the results of its regional business activity survey at 9:45 a.m. ET. The business barometer is expected to improve from 46.9 in December to 48 in January, with the most recent month’s reading showing continued contraction.

The Energy Information Administration is scheduled to release its customary weekly petroleum status report at 10:30 a.m. ET.

The Fed is expected to release its post-meeting policy statement at 2 p.m., followed by Chair Jerome Powell’s press conference at 2:30 p.m. ET.

See also: Best Futures Trading Software

Stocks In Focus:

• AMD fell about 6% in premarket trading due to the company’s quarterly results.
• Among other stocks moving on earnings are Microsoft (down about a percent), Alphabet (down about 6%), Electronic Arts Inc. (EA) (down about 2%), Mondelez International, Inc. (down over 4%), and Skyworks Solutions, Inc. (up nearly
  
  
  
  
  
  
  
  
  
  

  Market Volatility and Company Updates: Weekly Financial Snapshot

  Stock Market Recap

  The US stock market experienced significant volatility during the week, with several major companies making headlines. Tech giants Apple Inc., Microsoft Corporation, and Starbucks Corp. all posted substantial gains, with Apple and Microsoft increasing by over 3% and Starbucks by more than 3.5%.

  Additionally, a slew of companies including Boston Scientific Corporation, Brinker International, Inc., GSK plc, Mastercard Incorporated, Nasdaq, Inc., Novartis AG, Old Dominion Freight Line, Inc., Rockwell Automation, Inc., Teva Pharmaceutical Industries Limited, Thermo Fisher Scientific Inc., and Boeing Co. are due to report their quarterly results before the market opens.

  After-market reports are expected from Kulicke and Soffa Industries, Inc., MetLife, Inc., Qorvo, Inc., C.H. Robinson Worldwide, Inc., Wolfspeed, Inc., and Qualcomm, Inc..

  Notable Market Events

  Paramount Global, Inc. experienced a rally of over 17% following reports of media mogul Byron Allen’s $14.3-billion offer to acquire the company.

  In contrast, Tesla, Inc. saw a nearly 3% decline due to a legal setback for its CEO Elon Musk, whose 2018 compensation was nullified by a Delaware Chancery Court Judge.

  Commodities, Bonds, Other Global Equity Markets

  During the early European trading session, crude oil futures dropped by 1.20% to reach $76.89, reversing most of the previous day’s 1.35% gain.

  Moreover, the benchmark 10-year Treasury note fell by 0.023 percentage points to 4.034% on Wednesday.

  Notably, equity markets in Asia, particularly in China, Hong Kong, and Taiwan, experienced sharp declines, influencing a modestly positive sentiment elsewhere. Furthermore, European stocks exhibited signs of nervousness during late-morning trading.

  Read Next: Energy Stocks ‘A Hedge Against Things Getting More Out of Control’ In Middle East, Says Veteran Investor