Stock futures open slightly lower ahead of Federal Reserve update


U.S. equity futures opened a little lower on Tuesday night after major averages tried but failed to rebound after Monday’s massive sell-off of Evergrande in the regular session.

Futures contracts on the Dow Jones Industrial Average fell 50 points, or 0.15%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.22%, respectively.

In regular trading, the Dow lost 50.63 points, or 0.15%. The S&P 500 lost around 0.1% after its worst day since May on Monday. The Nasdaq Composite rose 0.2%.

Global markets continued to digest the news of the possible default of Chinese real estate developer Evergrande. At its peak, the Dow Jones Industrial Average recouped more than half of Monday’s losses, but those gains eventually evaporated during what ended up being a volatile session.

The Dow Jones and S&P looked set to break a three-day losing streak late in the afternoon, but fell back towards the close, finishing in the red for the fourth straight day and the fifth of six. last sessions. The Dow Jones is down 4% in September while the S&P is down 3.7%.

“In a way, the stagnation in the markets today is actually a pretty good result,” Fundstrat’s Tom Lee said on CNBC’s “Fast Money” Tuesday night. “We’re still in a position where stocks will eventually recover sharply, because unless Evergrande causes a real seismic effect on the US economy, US fundamentals are in good shape.”

The Federal Reserve will conclude its two-day meeting on Wednesday and issue a policy statement with economic forecasts and interest rates. President Jerome Powell is expected to address the media at 2:30 p.m. ET.

Investors expect to know exactly when the central bank plans to start cutting its bond purchases. Powell has previously said it could start as early as this year. This may not necessarily happen, however.

“I think they’re going to say they had a discussion about tapering. I don’t think they’re going to provide any specifics,” Rick Rieder, BlackRock’s investment manager for fixed income, told CNBC. global. “I think they’re going to provide a framework where they can start doing this in November or December.”

General Mills and Blackberry will release their quarterly results on Wednesday.

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