Futures mixed after previous session's rally, Fed meet in focus
(Reuters) — U.S. stock index futures were mixed on Tuesday in the run-up to the Federal Reserve's policy meeting that will shape expectations for its interest rate path, while investors also awaited a fresh batch of earnings reports.
Wall Street's main indexes rallied over 1% in the previous session, rebounding from a selloff in the past few weeks that was sparked by surging Treasury yields and the Israel-Hamas conflict.
U.S. equities are tracking their third straight month in the red, with the S&P 500 and the Nasdaq on course for their worst October since 2018.
At 5:18 a.m. ET, Dow e-minis were up 95 points, or 0.29%, S&P 500 e-minis were up 4 points, or 0.1%, and Nasdaq 100 e-minis were down 14.25 points, or 0.1%.
The Fed is set to kick off a two-day monetary policy meeting on Tuesday, at the end of which it is widely expected to hold interest rates steady, according to the CME Group's (NASDAQ:CME) Fedwatch tool.
Investors will focus on the Fed's commentary at the end of the meeting on Wednesday to gauge how long monetary policy could stay restrictive.
Meanwhile, the Bank of Japan tweaked its bond yield control policy again on Tuesday, further loosening its grip on long-term interest rates.
U.S. Treasury yields slid on Tuesday, with the yield on the 10-year note last at 4.84%, a day after the Treasury Department said it expects to borrow $76 billion less this quarter than previously anticipated.
Most megacap growth stocks were subdued, with Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) down 1.0% and 0.6% respectively in premarket trading.
U.S.-listed shares of Chinese companies such as JD (NASDAQ:JD).Com, Alibaba (NYSE:BABA), PDD Holdings and Bilibili (NASDAQ:BILI) shed between 1.3% and 2.1% premarket after data showed
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