On Tuesday night 2nd May, there was a small decline in U.S. stock futures as investors anticipated the upcoming policy decision by the Federal Reserve. Dow Jones Industrial Average futures dropped by 11 points, equivalent to a 0.03% decrease. Similarly, S&P 500 and Nasdaq 100 futures experienced slight declines of 0.08% and 0.16%, respectively.
Ford Motor and Starbucks both surpassed analysts' predictions in terms of revenue and profit in their most recent quarter. However, despite their positive performance, both stocks experienced declines during after-hours trading.
The major stock market indices experienced their second consecutive day of losses on Tuesday,2nd May. The Dow Jones Industrial Average fell by 367.17 points, equivalent to a 1.08% decrease. Similarly, the S&P 500 saw a decline of 1.16%, while the Nasdaq Composite dropped by 1.08%.
Markets were negatively affected by persistent worries about the spread of problems in the local banking industry after the collapse of First Republic Bank and its subsequent acquisition by JPMorgan. These concerns emerged just before the Federal Reserve's upcoming policy decision, with investors estimating an approximately 85% probability of an interest rate increase, as indicated by CME Group's FedWatch tool.
On Wednesday before the markets open, CVS Health, Yum Brands, and Spirit AeroSystems will be reporting their earnings as the corporate earnings season continues.
In terms of economic news, traders are eagerly awaiting the latest ADP jobs data for April. According to economists surveyed by Dow Jones, there is an expectation of a 133,000 increase in jobs last month.
This would represent a decrease compared to the 1,45,000-job growth of last month.
The S&P Global U.S. Services PMI data for April is also scheduled for release, and it is projected to show a reading of 53.7, which matches with the reading of last month.
In addition, the forecast for April's ISM non-manufacturing PMI data, according to consensus estimates by Dow Jones, is 51.8.
