FX.co ★ U.S. Stocks May Give Back Ground In Early Trading

Stocks may experience a downturn in early trading as index futures indicate a potential decrease with S&P 500 futures dropping by 0.4 percent. This shift is due to the uncertainty surrounding the future of interest rates, an issue brought to the fore by Neel Kashkari, President of the Minneapolis Federal Reserve.

Kashkari revealed that interest rates might maintain their current levels for an extended time. He also didn't dismiss the possibility of another rate increase. However, the Federal Reserve is expected to decrease the rates in the third quarter, although it may result in traders capitalizing on the recent market strength.

Despite ending on a nearly even note in the previous trading session, the major averages are at their highest levels in a month. However, with another relatively quiet day expected in U.S. economic activities, overall trading might remain subdued.

Weekly jobless claims, due to be announced on Thursday, might generate attention. Similarly, the University of Michigan is scheduled to share a preliminary report on consumer sentiment in May this Friday.

In the realm of individual stocks, Uber Technologies might see a significant drop after presenting an unexpected first quarter loss due to lower than anticipated booking revenue. Cloud communications firm Twilio may also experience pressure after exceeding first quarter estimates but disappointing with its second quarter revenue guidance.

However, Reddit stocks are expected to strengthen after announcing a lesser than expected loss in the first quarter and revenues beating expectations. Also, Lyft's stocks may rise following their first quarter results surpassing analyst predictions on both revenue and profit.

While stocks experienced modest strength for most of Tuesday's trading session, they decreased in the afternoon, ending the day virtually unchanged. However, the Dow still managed to close higher, marking its fifth consecutive day of growth and attaining its best closing level in one month.

In international trading, Asia-Pacific's stock markets showed mixed results on Wednesday. While Japan's Nikkei 225 Index fell by 1.6 percent and China's Shanghai Composite Index decreased by 0.6 percent, South Korea's Kospi grew by 0.4 percent.

On the other hand, Europe's major markets saw gains, with The French CAC 40 Index, the U.K.'s FTSE 100 Index, and the German DAX Index growing by 0.7 percent, 0.3 percent, and 0.1 percent respectively.

In commodities trading, crude oil futures dropped to $77.32 a barrel, a decrease of $1.06. On the other hand, gold traded at $2,325.50, up $1.30.

Lastly, on currency trading, the U.S. dollar traded at 155.59 yen compared to 154.69 yen at the close of New York trading on Tuesday. Against the euro, the dollar traded at $1.0739, a slight decrease from yesterday's $1.0755.