Market Analysis

US stock futures quiet as attention is focused on Fed hints and Q3 earnings

Amos Simanungkalit · 14 Oct 202425.5K Views

U.S. stock index futures edged lower in evening trading on Sunday as investors remained cautious ahead of the third-quarter earnings season, set to accelerate this week, and awaited further guidance on interest rates.

After Wall Street hit record highs on Friday, buoyed by upbeat earnings from major banks, investors are now speculating on whether the Federal Reserve will proceed with interest rate cuts in November.

A number of Federal Reserve officials are scheduled to speak this week, providing further insights into potential rate moves. Additionally, several key economic reports are expected to influence the broader outlook.

By 19:27 ET (23:27 GMT), S&P 500 futures had dipped 0.1% to 5,856.25 points, Nasdaq 100 futures were down 0.1% to 20,436.0 points, and Dow Jones futures eased to 43,122.0 points.

Q3 Earnings Season Set to Intensify
The third-quarter earnings season is expected to gather pace this week with major reports from firms such as Johnson & Johnson (NYSE: JNJ), Bank of America Corp (NYSE: BAC), Citigroup Inc (NYSE: C), Goldman Sachs Group Inc (NYSE: GS), and United Airlines Holdings Inc (NASDAQ: UAL) on Tuesday. Morgan Stanley (NYSE: MS) is due to report on Wednesday, completing the key earnings releases from the banking sector.

Semiconductor giant ASML Holding (NASDAQ: ASML) will release its earnings on Wednesday, while Netflix Inc. (NASDAQ: NFLX) is scheduled to report on Thursday.

Investors will closely monitor whether corporate earnings have managed to stay resilient in the face of high interest rates and persistent inflation pressures. Tech sector earnings, in particular, will be watched for signs of continued demand driven by artificial intelligence, especially in the chipmaking industry.

Bank Earnings Push S&P, Dow to Record Highs
Wall Street indexes reached new highs on Friday, driven by better-than-expected earnings from JPMorgan Chase & Co (NYSE: JPM) and Wells Fargo & Company (NYSE: WFC).

The S&P 500 climbed 0.6% to a record 5,815.03 points, while the Dow Jones Industrial Average jumped nearly 1%, closing at a record 42,863.86 points. The Nasdaq Composite, however, lagged, inching up 0.3% to 18,342.94 points.

Positive earnings reports from JPMorgan, Wells Fargo, and asset management firm BlackRock Inc (NYSE: BLK) set a favorable tone for upcoming financial sector earnings.

Meanwhile, Wall Street's gains also reflected growing expectations that the Federal Reserve may reduce interest rates by at least 25 basis points in November, despite recent data showing stronger-than-expected consumer inflation.

Last week, producer inflation data mostly surpassed forecasts, while consumer sentiment came in weaker than anticipated.

This week, attention will shift to speeches from several Fed officials, which are likely to offer additional clues about the central bank's stance on future rate cuts.