U.S. futures were down Wednesday morning as investors awaited a decision by the Federal Reserve on interest rates. The previous day saw a significant drop in the stock market, with the Dow Jones Industrial Average closing out April down 570 points. The S&P 500 and Nasdaq also experienced losses, marking the worst month of the year so far for equities.
However, there were some bright spots in the market, with Amazon shares jumping in after-hours trading thanks to a sales surge fueled by investments in artificial intelligence technology. CEO Andy Jassy expressed optimism about the company’s future during the earnings call, stating that there is a “very large opportunity in front of us.”
Several high-profile brands are set to release their quarterly earnings on Wednesday, including Mastercard, Pfizer, CVS, Marriott, Estee Lauder, The Kraft Heinz Company, and Yum! Brands. Food delivery company DoorDash is also expected to publish its earnings after the bell.
Pfizer shares saw a boost on Wednesday morning following news that Tidvak, a drug for treating cervical cancer, received full approval from the FDA. Positive results from a phase III clinical trial showed that Tidvak provided a 30 percent risk of death reduction compared to chemotherapy, with projected sales of $744 million by 2029.
Investors are eagerly awaiting the Fed’s interest-rate decision later in the day, as well as Chairman Jerome Powell’s press conference. Economic growth slowdown last quarter may dampen hopes of a rate cut, but investors will be looking for clues on the central bank’s rate path. Inflation currently stands at 3.5 percent, above the Fed’s target of two percent.
Looking ahead, big names to watch this week include Apple, Novo Nordisk, Shell, and Moderna. Apple, in particular, has been strengthening its AI capabilities and has plans to make significant advancements in the field in 2024. The company has also been expanding its presence in Zurich, establishing its “Vision Lab” in the Swiss city.
Overall, the market is bracing for a busy week of earnings reports and economic news, with investors keeping a close eye on developments in various sectors.
