Dow, S&P 500 and Nasdaq futures mixed ahead of Fed decision and tech earnings

what happened

According to Stocktwits, US stock futures were moving in different directions overnight. Dow Jones futures fell 0.30%, S&P 500 futures dipped 0.06%, and Nasdaq-100 futures rose 0.18%. The previous session saw the main indexes close higher, with the Nasdaq Composite up 1.18%. Investors are waiting for results from large technology companies and the Federal Reserve's policy decision. Most participants expect rates to stay at 3.75%–4.00%, and CME FedWatch data puts the probability of a hold at 90.6%.

Chip stocks rallied after Broadcom said a group of banks would provide $63 billion in financing for chips and networking products sold to Anthropic. AVGO rose 4%, while SOXL gained more than 11%. Earnings reports from SK Hynix, Robinhood, Boeing and Enphase Energy are also setting the tone. The 10-year US Treasury yield moved back above 5%, trading at 5.022%. Brent crude rose nearly 2% to $115.88 a barrel, as there is no sign of an end to the war with Iran.

why it matters

Two factors matter for markets. First, the Fed may hold rates, but traders are pricing in a possible December hike as inflation rises, which pressures bonds and growth stocks. Second, the prolonged conflict with Iran supports oil, and high energy prices add to inflation risks.

market impact

US indexes and Treasuries: the Fed decision and yields above 5% weigh; oil is supported by the Middle East conflict

• ▲Brent pressure up — a prolonged war with Iran offers no quick recovery in supply
• ▼UST 10Y pressure down — expectations of a possible Fed hike in December push yields up and prices down

instruments