Investing.com — U.S. stock index futures traded sideways in overnight trade Wednesday, as a recent rebound on Wall Street stalled after a series of Federal Reserve officials warned that interest rates will remain high for longer.
This puts more Fed officials' upcoming addresses on Thursday and Friday squarely into focus, especially after recent data showed some slowdown in the US economy.
Some disappointing quarterly earnings also weighed on sentiment, with the chip designer arm Holdings Inc (NASDAQ:) and homestay platform Airbnb Inc (NASDAQ:) decline in aftermarket trade.
The index fell 0.1% to 5,209.75 points, while it fell 0.1% to 18,163.75 points by 19:16 ET (23:16 GMT). It settled at 39,196.0 points.
Wall Street stumbles as Fed officials downplay interest rate cut bets
The latest rally ran out on Wall Street on Wednesday after a series of Federal Reserve officials warned that the central bank is likely to keep interest rates steady this year amid rising inflation.
They pointed to ongoing concerns about flat inflation as the biggest driver of fixed interest rates, even as recent data showed some slowdown in the labor market, another point of consideration for the Fed.
The Fed's comments sparked a rebound in the dollar and Treasury yields, which in turn affected stock markets. The index closed stable at 5,187.67 points on Wednesday, while it decreased by about 0.2% to 16,302.76 points.
It rose 0.4% to 39,056.39 points, supported by gains in Amgen (NASDAQ:) stock amid continued optimism about the drugmaker's weight-loss injection.
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More Fed officials are scheduled to speak in the coming days, and they are scheduled to speak on Thursday, while they will speak on Friday.
Fedspeak aside, the switch will be flipped next week.
The arm sinks under poor guidance, worrying chipmakers
Shares of British chip designer Arm fell about 10% in aftermarket trading after annual revenue forecasts largely disappointed investors.
While Arm's March quarter earnings beat estimates, the weak guidance raised questions about how justified the recent collapse in valuations due to AI was.
Arm's report sparked post-market losses at chipmakers NVIDIA Corporation (NASDAQ:) and Advanced Micro Devices Inc (NASDAQ:). AMD posted largely consistent earnings in the March quarter, while Nvidia is scheduled to report earnings for the period next week.
Among other aftermarket stocks, Airbnb fell 7% on disappointing annual guidance, while Airbnb fell 7% on disappointing annual guidance. stutter Inc (NASDAQ:) amid expectations of strong earnings growth.
Trading platform Robinhood Markets Inc (NASDAQ:) rose nearly 4% after reporting strong quarterly earnings thanks to rising user numbers.
