Stock Market News Live Updates: Stock Futures Extend Losses As Investors Process Tech Earnings, Wait For Fed

Stock futures contributed to losses in late trading on Tuesday, with investors digesting a slew of Big Tech earnings results and looking forward to another set of reports on Wednesday. A monetary policy statement from the Federal Reserve is also scheduled for release.

Contracts on the S&P 500 were down about 0.25% at the start of the overnight session. The index, as well as the Dow and Nasdaq, retreated from record levels during the regular trading day.

Shares of Apple (AAPL) and Microsoft (MSFT) fell in late trading even after both tech titans far surpassed Wall Street’s estimates in their latest earnings reports. However, Apple executives said they expected a slowdown in revenue growth in the current quarter after a spike from April to June, and that delivery issues would weigh on hardware like the iPhone. And investors seemed to fall for a slightly een disappointing result of Microsoft’s Azure cloud business, covering more than last quarter up to 45% sales growth excluding currency effects.

The after-hours move higher in shares of Google’s parent company Alphabet (GOOGL), however, followed the strong beat in quarterly revenue and earnings. An uptick in travel-related ad spend and continued YouTube advertising growth helped drive revenue, excluding traffic acquisition costs, to $51 billion, up 61% from last year.

Profits will continue on Wednesday, with big names such as Boeing (BA), Pfizer (PFE) and McDonald’s (MCD) posting results before the market opens, and Facebook (FB) and PayPal (PYPL) reporting after the close.

Investors will also be closely monitoring the Federal Open Market Committee’s monetary policy decision in July and the latest public comments from Federal Reserve Chairman Jerome Powell Wednesday afternoon. In the weeks since the Fed meeting in June, concerns about the Delta variant have fueled additional concerns about the economic outlook. However, inflationary pressures also came in higher than expected at both consumer and producer levels, challenging the Fed’s ability to maintain its ultra-accommodative monetary policy. And inflation mentions during corporate earnings talks this season are already up a staggering 1,000% from last year, according to Bank of America.

“Since the June meeting, job growth has risen faster than expected and inflation has continued to get much hotter. That will no doubt keep our eyes and ears sharp for signs that the FOMC could promote the eventual winding down of asset purchases, a topic that has already confirmed it will be on the table,” Wells Fargo senior economist Sam Bullard wrote in a note.

“Discussions over the pace and composition of tapering will deepen during this week’s meeting as the officials’ disagreements are still present and it will take some time to reach a consensus,” he said. “Most Fed officials view the recent rise in inflation as largely ‘transient’, although it will be interesting to see if Chairman Powell expresses any additional focus/caution on upside inflation risk.”

6:06 PM ET Tuesday: Stock Futures Contribute to Losses

These were the key moves in the markets as the overnight session kicked off on Tuesday:

  • S&P 500 futures (ES = F): -13 points (-0.3%) at 4,381.50

  • Dow futures (YM=F): -95 points (-0.27%) to 34,858.00

  • Nasdaq futures (NQ = F): -70.25 points (-0.47%) to 14,877.5

  • rough (CL=F): +$0.24 (+0.33%) to $72.15 per barrel

  • Gold (GC=F): -$1.80 (-0.1%) to $1,797.40 per ounce

  • 10-year treasury (^TNX): unchanged, yield 1.295%

NEW YORK, NY – JUNE 02: Exterior view of the New York Stock Exchange and Wall St. as new company Organon begins trading next Thursday in New York City on June 02, 2021. Organon plans to expand to provide treatments for other conditions unique to women, about 80% of the new company’s revenue will come from outside the US (Photo by Kena Betancur/VIEWpress)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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