Traders work on the New York Stock Exchange on February 1, 2024.
Brendan Mcdermid | Reuters
S&P 500 futures hovered around the flat line on Tuesday following a sell-off driven by higher bond yields and concerns that the Federal Reserve will not cut rates as much as Wall Street expected.
Futures linked to the general market index fell only 0.04%. Dow Jones Industrial Average futures fell 79 points, or 0.2%. Nasdaq-100 futures rose 0.1%.
Actions of Palantir Technologies rose 18% after the company published a income pace in the fourth quarter. NXP Semiconductors rose more than 2% thanks to better-than-expected results.
On Monday, the S&P 500 It lost 0.32%, retreating from its all-time high reached last week. The stock drop came after Federal Reserve Chair Jerome Powell reaffirmed that a rate cut is unlikely at the central bank's March meeting. His comments, which aired on "60 Minutes" Sunday night, led the 10-year Treasury yield to rise about 13 points on Monday to 4.16%. New economic data also pushed yields higher.
Bob Doll, CEO of Crossmark Global Investments, expressed concern about whether the market will be able to sustain its recent rally.
"There is a lot of momentum, but I am worried [the S&P 500 at] 20 times earnings, and the Federal Reserve is not going to live up to it [rate] reduce expectations. And I don't see how we're going to get double-digit earnings growth," Doll said on CNBC's "Closing Bell: Overtime" on Monday.
"I put all that together: I'm involved but I'm nervous," Doll added.
On the economic front on Tuesday, Wall Street will be watching the New York Federal Reserve's credit and household debt report for the fourth quarter. Several central bank speakers are scheduled to deliver remarks, including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins.
Tuesday marks roughly the halfway point of earnings season. Eli Lilly, Boeing Spirit supplier AeroSystems and DuPont will report their quarterly results that morning, followed by Amgen, Chipotle Mexican Grill and Ford after the bell.
