US stock futures changed little in the early morning of Wednesday morning trading as investors prepared for comments from the Federal Reserve later that day.
Dow futures rose 25 points. The futures on the S&P 500 and Nasdaq 100 were also slightly higher.
Better-than-expected post-bell profits from FedEx and Adobe have boosted sentiment. FedEx posted a blowout quarter of $ 2.18 per share earnings, which is above analyst estimates and fueled by the e-commerce boom. The shipping company increased its expanded trade by more than 9%. Adobe jumped 2% after hours.
The Dow closed marginally on Tuesday after accumulating more than 200 points at the beginning of the session. Apple stock has peaked following the tech giant's new product event, slipping an average of 30 shares following the new product event.
The S&P 500 rose 0.5% despite weak financial data. Tuesday was the third day in a row that the 500-share index made gains.
Tech stocks continued their broad rally. The Nasdaq Composite rose 1.2%, bringing its weekly gain to over 3%. The tech-heavy index fell in correction territory last week and had its worst weekly performance since March.
Positive economic data in the US and China on Tuesday boosted sentiment on Tuesday.
"Optimism is backed by a steady flow of good economic news, healthy earnings news, and the prospect of reassuring news from the Federal Reserve tomorrow, suggesting they remain determined to heat the recovery and continue to take supportive action," Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC.
Wednesday marks the second day of the Federal Reserve's policy meeting, the first since Chairman Jerome Powell unveiled a policy change towards greater inflation tolerance and effectively committed to keeping interest rates low for longer. Investors broadly expect the central bank to maintain its bullish stance on the economy.
The Federal Open Market Committee will update its GDP, unemployment and inflation estimates quarterly. The central bank could provide clearer guidance on how to raise rates in the future.
"The Fed doesn't like to be involved in politics, despite being a political institution by nature, but two months before an election it's a very difficult time to put your politics aside," said David Zervos, chief marketing strategist at Jefferies , at CNBC's "Closing Bell" on Tuesday. "You just have to expect that politics will be considered.
One of the hottest IPOs of 2020 opens for trading on Wednesday. Data storage software company Snowflake has received 30 times forward sales and even a rare vote of confidence from Berkshire Hathaway. Snowflake is expected to go public at a stock price between $ 100 and $ 110, according to an updated S-1 announcement made Monday.
August retail sales data will be released on Wednesday at 8:30 am. Analysts polled by FactSet expect a 1.1% increase from the 1.2% increase in July.
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