Investing.com – U.S. stock index futures edged up modestly in after-hours trade on Tuesday as Wall Street appeared to have stabilized after concerns about higher, longer-term interest rates sparked a series of sharp losses.
But risk appetite remained fragile, especially amid ongoing geopolitical tensions in the Middle East, while top Federal Reserve officials also reaffirmed the central bank’s outlook for stable interest rates.
rose 0.2% to 5,103.0 and was up 0.2% at 17,924.50 by 7:37 pm ET (2337 GMT). increased by 0.2% to 38,125.0 points.
Wall Street mixed as Powell signals less confidence in cuts
Wall Street indexes closed mixed on Tuesday as some positive gains were largely offset by Federal Reserve Chairman Jerome Powell signaling that recent signs of persistent inflation are making the central bank less confident about cutting interest rates early.
Powell’s comments came after better-than-expected inflation and retail sales data for March showed inflation is likely to remain well above levels the Fed is comfortable with. It also led traders to largely overestimate expectations for a rate cut in June.
The index fell 0.2% to 5,051.41 while the index fell 0.1% to finish at 15,865.25. Shares of the insurer rose 0.2% to 37,798.97, helped by strength in UnitedHealth Group Incorporated (NYSE:) shares after the insurer posted strong first-quarter earnings.
Wall Street also appears to be stabilizing after falling 1.5% to 2.3% over the past five sessions as worsening risk appetite led investors to lock in recent gains.
Markets were spooked by the worsening crisis in the Middle East after Iran launched a drone and missile attack on Israel while the latter was now seen preparing a response.
Technological advances offer some support
Rising shares of major technology companies provided some support to Wall Street on Tuesday. Shares of Microsoft Corporation (NASDAQ:), Wall Street’s biggest stock, rose 0.2% after it said it would invest $1.5 billion in Abu Dhabi-based artificial intelligence company G42. Microsoft shares also rose 0.4% in after-hours trading.
The news sparked some gains in other artificial intelligence stocks, with market darling NVIDIA Corporation (NASDAQ:) rising 0.6% in the aftermarket after rising 1.6% during the session.
Earnings season continues
Some positive first-quarter earnings reports also helped support sentiment. Morgan Stanley Shares of (NYSE:) rose 0.2% in the secondary market after reporting better-than-expected quarterly earnings.
UnitedHealth shares rose 0.2% after rising 5.3% on strong earnings.
Earnings season continues on Wednesday with participation from Dutch chipmaker ASML Holding (AS:) NV (NASDAQ:) and the healthcare giant. Abbott Laboratories (NYSE:) on tap.