US stocks opened lower on Tuesday as investors awaited the Federal Reserve’s interest rate decision and Amazon’s earnings report. The S&P 500 and Nasdaq Composite both slipped roughly 0.3% and 0.4%, while the Dow Jones Industrial Average fell about 0.4%.
This month is shaping up to be the worst for stocks in 2024, with the major indexes set to end with losses after a rough mid-April stretch. However, investors are hopeful for a rebound after a positive week.
Anticipation for the Fed’s decision is competing with strong quarterly results from companies like Paramount and Tesla. The prospect of rate cuts has diminished since the start of the year, leading to higher Treasury yields, which can impact stocks. The 10-year Treasury yield held near six-month highs around 4.66% on Tuesday.
Amazon’s earnings report after the bell will be closely watched, following impressive results from Microsoft and Alphabet. Big Tech companies have been delivering strong earnings, but concerns about heavy AI spending remain.
Other notable earnings reports include Coca-Cola and McDonald’s, with AMD and Starbucks set to report after the markets close.
Overall, investors are navigating a complex landscape of economic data, earnings reports, and Fed decisions as they seek to make informed decisions in the stock market.