Following a mixed performance in the previous trading session, the prediction for Wednesday points towards a possible downside in early trading, with major index futures hinting at a softer market opening. The S&P 500 futures, for instance, have dipped by 0.4 percent.
Technology stocks could continue their notable retreat, as indicated by a 1.0 percent drop in the Nasdaq 100 futures. Google's parent company, Alphabet (GOOGL), is expected to exert pressure on the tech sector following a steep drop of 5.5 percent in pre-market trading. This trend follows Alphabet's recent fourth quarter results which, despite beating top and bottom line estimates, revealed weaker-than-expected ad revenue.
The chipmaker Advanced Micro Devices (AMD) might also face pressure following fourth quarter earnings that aligned with estimates but disappointed with its first quarter projections. Meanwhile, Microsoft (MSFT) shares are showing pre-market slump due to unexpectedly strong fiscal second quarter results, combined with forecasts of third quarter revenues falling short of estimates.
On the other hand, Boeing (BA) shares may show initial strength after the aerospace titan reported a narrower than expected loss in the fourth quarter.
However, overall trading activity may be relatively quiet as traders await the Federal Reserve's announcement of monetary policy. Though interest rates are expected to remain unchanged, the statement could significantly influence future rate perspectives. Recent optimism about a rate cut in March has dwindled, with several economists predicting a potential rate reduction in May.
Looking at U.S. economic news, a report by payroll processor ADP revealed slower than predicted private sector job growth in January. ADP reported an increase of 107,000 jobs, down from December's revised figure of 158,000 jobs. Economists had predicted an increase of 145,000 jobs.
Trading is also scheduled to commence shortly after the release of an MNI Indicators report on business activity in the Chicago area for January. The Chicago business barometer is predicted to rise slightly to 48.0 from 46.9 in December. A reading below 50, however, would suggest a contraction.
Following Monday's strong trading session, U.S. major stock indexes showed a mixed performance Tuesday. The Dow Jones climbed to a new closing high, while the tech-focused Nasdaq receded notably. The Dow rose by 133.86 points or 0.4 percent to 38,467.31, while the Nasdaq shrank by 118.15 points or 0.8 percent to 15,509.90. The S&P 500 fluctuated throughout the day before closing down by 2.96 points or 0.1 percent at 4,924.97.
Overseas, Wednesday's trading saw mixed results across the Asia-Pacific region, with Japan's Nikkei 225 Index rising by 0.6 percent and China's Shanghai Composite Index falling by 1.5 percent.
European markets saw a modest increase, with the German DAX Index hovering right above the unchanged line and both the U.K. FTSE 100 Index and the French CAC 40 Index rising by 0.2 percent.
In commodities, crude oil futures slipped $0.93 to $76.89 a barrel after a $1.04 rise to $77.82 a barrel on Tuesday. Meanwhile, gold is trading at $2,056 an ounce, a $5.10 increase from the previous session's close of $2,050.90, which itself saw a $6.30 increase from the day before.
Regarding currency, the U.S. dollar is trading at 147.56 yen, slightly lower than Tuesday's closing of 147.61 yen. Against the euro, the dollar is trading at $1.0851, up from Tuesday's $1.0845.
