Stock index futures traded cautiously on Tuesday, while yields were lower ahead of more Fedspeak and as investors await Nvidia’s (NVDA) quarterly results scheduled for tomorrow.
S&P 500 futures (SPX), Nasdaq 100 futures (US100:IND) and Dow futures (INDU) moved less than 0.1%.
The 10-year Treasury yield (US10Y) was down 2 basis points to 4.43%. The 2-year yield (US2Y) was down 2 basis points to 4.84%.
Investors watched the major market averages conclude Monday’s trading session in a mixed fashion.
“The market has instead focused on accommodative financial conditions, broadly resilient growth, a decent earnings season, inflation trending lower, and the Federal Reserve cuts just being delayed rather than not happening,” Deutsche Bank’s Jim Reid said.
“Investors have grown more positive about a soft landing in the last couple of weeks, after having some doubts in April,” Reid added.
Palo Alto (PANW) was down 7.8% in premarket trade, after its quarterly billings outlook failed to bring cheer to investors, despite solid Q3 results.
On the earnings front, Nvidia (NVDA) is expected to release its first quarter results on May 22 after the bell.
There is a slew of Fed speakers lined up for today, which include, Richmond Fed President Tom Barkin, Fed Governor Christopher Waller, Atlanta Fed President Raphael Bostic and Fed Vice Chair for Supervision Michael Barr.
“The U.S. market is walking back post-CPI repricing of rate expectations, with the help of Fed officials’ warnings that there’s enough uncertainty about the inflation outlook to keep rates on hold until the outlook becomes clearer,” Kit Juckes, FX strategist Societe Generale, said.
“We can sum up market opinion as ‘inflation should come down, but we’re not sure when’. The Fed’s response is to wait, the market’s is to watch the data,” Juckes added.
The U.S. Redbook is also due today before the bell.
