U.S. stocks are expected to lack direction tonight ahead of the FOMC meeting and earnings announcements from major technology companies. Attention is focused on upcoming catalysts following the previous day's sharp decline and higher oil prices.
U.S. stocks fell sharply the previous day, with the Dow down more than $652, as higher oil prices and rising inflation concerns pushed up long-term U.S. interest rates. Financial and machinery stocks led the decline, partly on concerns arising from American Express's weaker earnings, while some semiconductor stocks saw buying-back activity.
The FOMC meeting on the 26th and 27th and earnings announcements from major technology companies including Alphabet, Microsoft and Amazon.com are scheduled for the 26th. The market is expected to lack direction. While markets are pricing in unchanged interest rates, expectations of a rate hike in December remain firm, increasing attention on the statement and the chair's press conference.
Verizon Corporation is scheduled to announce its earnings before the market opens. Semiconductor-related stocks are weak in Japan, while the KOSPI is also struggling to gain ground. Meanwhile, crude oil futures have been edging lower during Asian trading hours. A pause in the rise in oil prices could provide support for the equity market.