U.S. stock futures opened slightly lower on Tuesday night when major averages were attempted but failed to bounce back from Monday’s Evergrand-led sell-off in the regular session.
The Dow Jones Industrial Average futures are down 30 points, or 0.09%. The S&P 500 futures and the Nasdaq 100 futures fell 0.13% and 0.18%, respectively.
The Dow lost 50.63 points, or 0.15%, in regular trading. The S&P 500 is down about 0.1% after the worst day since Monday to May. The Nasdaq Composite rose 0.2%.
Global markets continue to digest news of the potential default of Chinese property developer Evergrand. At its highest point, the Dow Jones Industrial Average recovered more than half of Monday’s losses but those gains eventually evaporated which eventually turned into an volatile session.
The Dow and S&P were ready to show a three-day rate continuity last afternoon but then went down to the red on the fourth day and fifth in the last six sessions. The Dow is down 4% and the S&P is down 3.7% in September.
Tom Lee of Fundstrat told CNBC’s “Fast Money” on Tuesday night, “In a way, the market is flat today, which is actually a pretty good result.” “We’re still in a position where stocks are finally going to rally tightly, because if Evergrand can’t make a real earthquake impact on the U.S. economy, U.S. fundamentals are in good shape.”
The Federal Reserve will conclude its two-day meeting on Wednesday and release a policy statement including economic and interest rate forecasts. Chairman Jerome Powell is expected to speak to the media at 2:30 p.m.
Investors expect to hear details about exactly when the central bank plans to reduce its bond purchases. Powell had previously said it could start later this year. Although this may not necessarily happen.
“I think they’re saying they’ve discussed tapping. I don’t think they’re going to give any details,” Rick Reeder, chief investment officer at Blackrock’s global fixed income, told CNBC. “I think they’re going to provide a framework where they can start doing it in November or December.”
General Mills and BlackBerry will report quarterly earnings on Wednesday.