S&P 500, Nasdaq set for subdued open ahead of Fed decision; chip stocks wobble

The S&P 500 and the Nasdaq were set for a subdued opening on Wednesday as investors awaited the Federal Reserve's monetary policy verdict against a backdrop of simmering Middle East tensions, while chip stocks struggled ahead of Big Tech earnings later this week. At 8:35 a.m. ET, Dow E-minis YMcv1 were down 321 points, or 0.61%, and S&P 500 E-minis EScv1 were down 2.5 points, or 0.03%. Nasdaq 100 E-minis NQcv1 were down 34.5 points, or 0.12%. Ford Motor F.N gained 5.1% after raising its annual profit outlook for a second time this year. Procter & Gamble PG.N dropped 2.7% after forecasting slower revenue growth in fiscal 2027. The second-quarter earnings season has broadly reflected healthy corporate performance, with 85.2% of the 169 S&P 500 companies that have reported earnings having surpassed expectations, LSEG-compiled data showed. Historically, 68% of companies have achieved that feat in a typical quarter. The Fed will announce its monetary policy verdict at 2:00 p.m. ET against the backdrop of crude prices LCOc1 soaring by 7% to $89.94 a barrel, as U.S. President Donald Trump said that the U.S. would respond to Iran's attacks in Jordan. Traders see a 39.4% chance of a rate hike, according to LSEG data, following a report showing that price pressures eased in the prior month, but they are confident that rates will rise by at least 25 basis points by year-end. Markets will scrutinize Chairman Kevin Warsh's comments following the decision to gauge his tone on monetary policy at a time when he has said that the central bank will avoid offering any guidance on interest rates. Tech concerns have pushed the Nasdaq .IXIC to a three-month low, prompting investors to focus on other areas of the market such as consumer staples .SPLRCS and healthcare .SPXHC. The blue-chip Dow .DJI is also at a two-week high, while the S&P 500 equally-weighted index .SPXEW hit a record high on Tuesday. Global markets have been volatile this month as investors questioned the sustainability of the AI spending boom after signs that major U.S. companies were deepening a web of AI-linked investments and continuing to funnel billions into the technology at the expense of free cash flow. The scrutiny comes as competition from China heats up, both in the race to develop advanced chips and as Chinese firms roll out cheaper AI models. On Wednesday, the rout extended from Asia through Europe after South Korean chipmaker SK Hynix's 000660.KS bumper quarterly results fell short of lofty investor expectations. U.S.-listed shares of the company SKHY.O dipped 1.6% in premarket trading, while other chip stocks seesawed in volatile trade. Nvidia NVDA.O was flat, Intel INTC.O climbed 0.7%, Applied Materials AMAT.O dropped 3.2% and Sandisk SNDK.O dipped 1.2%. Data storage provider Seagate Technology STX.O was a bright spot, climbing 4.9% after forecasting quarterly results above estimates. KLA Corp KLAC.O, meanwhile, forecast stronger-than-expected first-quarter revenue, but its shares fell 9% as investors sought more. Results from Microsoft MSFT.O and Meta META.O are due after markets close, while Amazon.com AMZN.O and Apple AAPL.O are expected later this week. Traders will closely watch for signs that their billion-dollar AI investments were boosting earnings. Shares of the companies struggled for direction.

S&P 500, Nasdaq set for subdued open ahead of Fed decision; chip stocks wobble

Market set for subdued open

Corporate results and profit outlooks

Fed decision and broader market rotation

Chip stocks wobble ahead of major earnings

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