U.S. stock index futures experienced a slight decline on Tuesday evening as investors eagerly awaited insights into monetary policy from the Federal Reserve's late-January meeting.
The technology sector, particularly NVIDIA Corporation (NASDAQ:NVDA), faced headwinds with expectations surrounding its fourth-quarter earnings, contributing to a decrease in S&P 500 Futures to 4,988.50 points, Nasdaq 100 Futures to 17,566.50 points (a 0.2% drop), and Dow Jones Futures to 38,632.0 points.
The decline in Wall Street indexes on Tuesday, primarily attributed to profit collection in chipmaker Nvidia ahead of its earnings report, resulted in a 1.4% drop in aftermarket trading after a more than 4% loss during the session.
Despite expectations of improved earnings and revenue compared to the previous year, uncertainties regarding Nvidia's future outlook and its elevated price-to-earnings ratio prompted profit-taking, affecting broader tech stocks that had benefited from the artificial intelligence trend.
Nvidia's losses influenced the NASDAQ Composite, which fell 0.9%, and the S&P 500, which lost 0.6%.
The Dow Jones Industrial Average experienced comparatively lower losses at 0.2%, but all three indexes remained in proximity to their record highs.
Investors were eagerly anticipating the release of the Federal Reserve's late-January meeting minutes later on Wednesday for more information on interest rate trajectories.
While the central bank maintained rates during the meeting, concerns about persistent inflation hinted at a likelihood of prolonged higher interest rates in 2024.
Additionally, remarks from various Fed speakers, including Raphael Bostic and Michelle Bowman, were scheduled for later in the day.
In the post-market period, significant movements included Palo Alto Networks Inc (NASDAQ:PANW) plummeting 19% after revising its yearly guidance downward.
Teladoc Inc (NYSE:TDOC) experienced a 13% decline due to disappointing first-quarter guidance, and SolarEdge Technologies Inc (NASDAQ:SEDG) fell 15% on weak revenue projections for the first quarter.
CrowdStrike Holdings Inc (NASDAQ:CRWD) and Zscaler Inc (NASDAQ:ZS), peers of Palo Alto Networks, also registered declines.
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