US stock market today: Dow, S&P 500 futures flat ahead of Fed decision, megacap earnings

US stock futures were trading flat in Wednesday’s session, 29 April, as investors awaited the US Federal Reserve’s policy decision, while four of the S&P 500’s most closely watched companies were due to report quarterly results. In addition, the continued rise in crude oil prices kept overall market sentiment cautious.

Futures tied to the two key indices, the Dow Jones Industrial Average and S&P 500, were trading largely unchanged from the previous close. The Nasdaq Composite futures were up by 0.30%.

All three major indices had ended lower on Tuesday as reports that OpenAI missed internal revenue and weekly user targets sent tremors through technology counters. The Wall Street Journal reported that AI heavyweight OpenAI had fallen short of its internal targets for weekly users and revenue, raising fresh concerns about the ChatGPT parent’s ability to sustain its massive spending on data centres.

Wall Street’s next leg of the rally is likely to be determined by earnings from key technology giants, with Alphabet, Amazon, Meta Platforms, and Microsoft scheduled to report later in the day, and Apple to follow on Thursday.

Expectations remain high that these technology majors will confirm another round of heavy infrastructure spending, which typically flows directly into semiconductor demand.

On the geopolitical front, US President Donald Trump said he was unhappy with Iran’s latest peace proposal as it delayed negotiations on the nuclear issue, dampening optimism over a near-term resolution to the conflict.

In another major development for energy markets, the United Arab Emirates announced that it will exit the Organisation of the Petroleum Exporting Countries (OPEC) next month, dealing a significant blow to the oil-producing bloc at a critical time for the global energy industry.

Beyond earnings, markets are also watching the Federal Reserve meeting, where policymakers are widely expected to keep interest rates unchanged, with investors keenly awaiting commentary on inflation and the broader economic outlook.

Meanwhile, the dollar index, which measures the greenback against a basket of major currencies, including the yen and the euro, rose 0.19%. The US dollar has remained one of the few safe-haven assets during the Iran conflict, although it has surrendered a large part of its March gains in recent weeks.

Brent crude extends winning streak to eight sessions

Crude oil prices continued to gather momentum amid fears of a prolonged closure of the Strait of Hormuz after reports emerged that the US may extend its blockade of Iranian ports. The rally was further supported by the United Arab Emirates’ decision to exit OPEC, tightening concerns over global supply.

Benchmark US crude jumped $4.42 to $104 a barrel, while Brent crude, the international benchmark, gained another $4.34 to hit $115.60 a barrel, extending its winning streak to eight straight sessions.

After hovering around $70 in late February, Brent prices are now moving closer to their peak of $119, reached when concerns over the war were at their highest.

US stocks in focus today

Vested Finance said that traders are positioned for quarterly results from Alphabet, Microsoft, Amazon, and Meta Platforms. Together, these companies have been central to the recent rally, and their earnings could determine whether the momentum continues.

On the stock-specific front, it highlighted that semiconductors were leading gains in premarket trading. Seagate Technology and NXP Semiconductors were both surging around 18% after posting strong quarterly results. Adidas emerged as a standout gainer, jumping over 7% on better-than-expected sales.

Healthcare stocks were also on investors’ radar, with Biogen moving higher after beating expectations, supported by its Alzheimer’s drug performance and cost controls.

The oil continues to dominate the macro backdrop, with Brent crude climbing above $114 a barrel as tensions in the Middle East persist, keeping pressure on inflation expectations and the broader central bank outlook, Vested Finance added.

Summing up the current setup, the brokerage said markets are buying the dip in technology stocks, but the real test still lies ahead. With megacap earnings and the Federal Reserve’s policy decision lined up, stock-specific moves are intensifying beneath what appears to be a relatively stable index performance.

(With inputs from Reuters)

Disclaimer: We advise investors to check with certified experts before making any investment decisions.