The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to move back to the upside following the modest weakness seen on Monday.

Optimism about the outlook for interest rates may inspire renewed buying interest on Wall Street following the Federal Reserve’s monetary policy announcement last week.

While the Fed left interest rates unchanged, as widely expected, officials maintained their forecast for three rate cuts this year.

Following the Fed announcement, the chances of a 25 basis point rate cut in June have rebounded to 64.4 percent, according to CME Group’s FedWatch Tool.

The major averages rallied to record highs on the heels of the Fed announcement last week, leading to some profit taking over the past two sessions.

Selling pressure remained subdued, however, as traders seem more concerned about missing out on further upside than suggestions the markets are overbought.

After an early move to the downside, stocks fluctuated over the course of the trading session on Monday but largely maintained a negative bias. The major averages all finished the day lower after ending last Friday’s trading mixed.

The tech-heavy Nasdaq fell 44.35 points or 0.3 percent to 16,384.47, pulling back off the record closing high set in the previous session, while the S&P 500 dipped 15.99 points or 0.3 percent to 5,218.19 and the Dow slid 162.26 points or 0.4 percent to 39,313.64.

Weakness among technology stocks weighed on the markets early in the session, with semiconductor giant Intel (NASDAQ:INTC) plunging by as much as 4.7 percent to its lowest intraday level in over four months.

The steep drop came after a report from the Financial Times said China has introduced new guidelines to phase microprocessors from Intel and Advanced Micro Devices (NASDAQ:AMD) out of government PCs and servers.

Intel climbed well off its worst levels but still slumped by 1.7 percent, while AMD ended the day down by 0.6 percent.

Shares of Microsoft (NASDAQ:MSFT) also fell by 1.4 percent after the FT said stricter Chinese government procurement guidance also seeks to sideline the company’s Windows operating system and foreign-made database software in favor of domestic options.

Nonetheless, selling pressure remained relatively subdued, as traders seemed reluctant to make more significant moves ahead of the release of some key economic data in the coming days.

Traders are likely to keep an eye on reports on durable goods orders, consumer confidence and pending home sales, although a report on personal income and spending that includes readings on inflation said to be preferred by the Fed will be released when the markets are closed for Good Friday.

The Commerce Department released a report this morning showing new home sales in the U.S. unexpectedly decreased in the month of February.

The report said new home sales dipped by 0.3 percent to an annual rate of 662,000 in February after jumping by 1.7 percent to a revised rate of 664,000 in January.

Economists had expected new home sales to surge by 2.9 percent to a rate of 680,000 from the 661,000 originally reported for the previous month.

Despite the modest weakness shown by the broader markets, airline stocks showed a strong move to the upside on the day, with the NYSE Arca Airline Index climbing by 1.5 percent.

Oil service stocks also saw considerable strength amid a sharp increase by the price of crude oil, driving the Philadelphia Oil Service Index up by 1.2 percent to a five-month closing high.

Computer hardware and oil producer stocks also saw some strength on the day, while software stocks moved to the downside.

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