U.S. stock futures rose on Wednesday following Tuesday’s mixed close. Futures of major benchmark indices were higher.
While the monetary policy aspect of Wednesday’s Federal Reserve meeting is expected to be routine, markets are bracing for a potentially tense press conference from Chair Jerome Powell as subpoenas and presidential pressure overshadow the proceedings.
The CME Group’s FedWatch tool‘s projections show markets pricing a 97.2% likelihood of the Federal Reserve leaving the current interest rates unchanged in January.
Meanwhile, the 10-year Treasury bond yielded 4.24%, and the two-year bond was at 3.57%.
IndexPerformance (+/-)Dow Jones0.04%S&P 5000.30%Nasdaq 1000.74%Russell 20000.40%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.33% at $697.77, while the QQQ advanced 0.77% to $635.96.
Stocks In Focus
Starbucks
- Starbucks Corp. (NASDAQ:SBUX) was 0.76% lower in premarket on Wednesday as it is projected to post quarterly earnings of 59 cents per share on revenue of $9.73 billion before the opening bell.
Microsoft
- Microsoft Corp. (NASDAQ:MSFT) rose 0.087% ahead of its earnings scheduled to be released after the closing bell. Analysts expect quarterly earnings of $3.97 per share on revenue of $80.27 billion.
- Benzinga’s Edge Stock Rankings indicate that MSFT maintains a weak price trend in the medium term but a strong trend over the short and long terms, with a good quality ranking.
Tesla
- Tesla Inc. (NASDAQ:TSLA) advanced 0.23% as it is projected to post quarterly earnings of 45 cents per share on revenue of $24.78 billion after the closing bell.
- TSLA maintains a stronger price trend over the long term but a weak trend in the short and medium terms with a moderate quality ranking, as per Benzinga’s Edge Stock Rankings.
Seagate Technology Holdings
- Seagate Technology Holdings PLC (NASDAQ:STX) jumped 10.02% after reporting better-than-expected revenue and earnings, along with strong guidance.
Packaging Corp
- Packaging Corp. Of America (NYSE:PKG) tumbled 2.07% after posting weaker-than-expected results for the fourth quarter. The company also said it sees first-quarter GAAP EPS of $2.20, versus market estimates of $2.26.
Cues From Last Session
While energy, information technology, and utilities stocks recorded the biggest gains on Tuesday, health care and financials bucked the trend to close lower.
IndexPerformance (+/-)ValueDow Jones-0.83%49.003,41S&P 5000.41%6.978,60Nasdaq Composite0.91%23.817,10Russell 20000.26%2.666,70
Insights From Analysts
Jeffrey Roach, Chief Economist at LPL Financial, forecasts a resilient U.S. economy in 2026, driven by a “productivity pop” that balances slowing labor demand.
He projects real economic growth to reach 2.5% year-over-year, with nominal growth surpassing 5%.
Roach emphasizes that “productivity growth is the key mechanism that allows the U.S. economy to expand above its long-run trend without reigniting inflation.”
This surge in efficiency, particularly from early AI adoption and technology, is expected to counter “warning signs from the job market.”
Contrasting with the consensus, Roach argues, “Despite a consensus view that we have a labor supply problem, our view is that we instead have a labor demand problem,” predicting that monthly job gains will slow to around 40,000.
Regarding the markets, his team maintains a “tactical neutral stance on equities,” advising investors to brace for volatility while favoring large-cap growth stocks and the communication services sector.
Ultimately, Roach sees productivity as the stabilizer supporting continued U.S. economic exceptionalism.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Wednesday.
- FOMC will announce its interest-rate decision at 2:00 p.m. and Fed Chair Powell will hold a press conference at 2:30 p.m. ET.
Commodities, Gold, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 0.22% to hover around $62.25 per barrel.
Gold Spot US Dollar rose 1.75% to hover around $5,272.90 per ounce. Its last record high stood at $5,311.68 per ounce. The U.S. Dollar Index spot was 0.08% lower at the 96.1410 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.52% higher at $89,223.76 per coin.
Asian markets closed higher on Wednesday, except Australia’s ASX 200 index. Hong Kong’s Hang Seng, China’s CSI 300, South Korea’s Kospi, Japan’s Nikkei 225, and India’s Nifty 50 indices rose. European markets were mostly lower in early trade.
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