Stock Markets Are Rising, Fed Meeting Is Anticipated

The Future of the Stock Market Shines

U.S. stock futures showed a slight increase on Tuesday as investors responded to the latest earnings reports and eagerly awaited the Federal Reserve meeting. Futures for the Dow Jones Industrial Average rose by 0.3%, while futures for the tech-heavy Nasdaq 100 increased by 0.1%. Trading on the S&P 500 showed minimal change after the index crossed the 6,800 level for the first time. By the end of the second day, with expectations of a U.S.-China trade deal, the stock market reached its highest levels in history.

The markets are preparing for the Fed’s two-day policy meeting that begins today. Investors are pricing in expectations for another interest rate cut on Wednesday. Fed Chair Jerome Powell is expected to give clues about a possible rate cut in December. Meanwhile, the ongoing government shutdown has rendered some data confidential, having a significant impact on Wall Street.

As the earnings report season continues, reports from companies such as Visa, UnitedHealth, UPS, and PayPal are drawing attention on Tuesday. In the coming days, results from tech giants referred to as the “Fabulous Seven,” including Alphabet, Apple, Meta, and Microsoft, will be announced.

Amazon announced plans to cut 14,000 job positions, a move aimed at reducing costs for the online retailer; hence, investors are focusing their attention there.

Later in the day, a speech by Nvidia CEO Jensen Huang is expected to provide important insights regarding which chips the leader in artificial intelligence can sell in China. This topic is emerging as a critical area within U.S.-China trade relations.

On the trade front, former President Donald Trump praised agreements with Japan Prime Minister Sanae Takaichi regarding rare earths and trade. It is crucial for his allies to identify Japanese companies that will take part in a $550 billion investment within the U.S.. Trump stated that they are prepared to provide any assistance to Japan.

On his first day in Asia, Trump also announced developments in trade agreements with countries like Malaya. These agreements aim to enhance U.S. access to essential minerals and ensure market security for U.S. products. This is a step taken ahead of a significant meeting between Trump and Chinese President Xi Jinping.

UnitedHealth raised its annual profit forecast after a better-than-expected earnings report on Tuesday, with its stock gaining 4% in pre-market trading.

UPS shares also saw a 14% increase on Tuesday, reporting fourth-quarter forecast revenue above Wall Street expectations.

Qorvo stock rose by 10% due to acquisition talks involving competitors to Skyworks, an Apple supplier.

Confluent shares surged by 11% in pre-market trading after the company’s third-quarter earnings exceeded Wall Street expectations.

FedEx shares climbed 3% following the positive third-quarter earnings results from its competitor, UPS.

Finally, Amazon announced it would cut 14,000 positions as part of its efforts to manage expanding investments in artificial intelligence and reduce costs.