U.S. Stocks May See Initial Weakness On Disappointing Tech Earnings News

Following the mixed performance seen in the previous session, stocks may move to the downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.

Technology stocks may extend the notable pullback seen in the previous session, as reflected by the 1.0 percent slump by the Nasdaq 100 futures.

A steep drop by shares of Alphabet (GOOGL) is likely to weigh on the tech sector, with the Google parent tumbling by 5.5 percent in pre-market trading.

Alphabet is under pressure after reporting fourth quarter results that beat estimates on the top and bottom lines but weaker than expected ad revenue.

Chipmaker Advanced Micro Devices (AMD) is also likely to come under pressure after reporting fourth quarter earnings in line with estimates but providing disappointing first quarter guidance.

Shares of Microsoft (MSFT) are also seeing some pre-market weakness after the software giant reported better than expected fiscal second quarter results but forecast third quarter revenues below estimates.

Meanwhile, shares of Boeing (BA) are likely to see initial strength after the aerospace giant reported a narrower than expected fourth quarter loss.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the Federal Reserve’s monetary policy announcement this afternoon.

While the Fed is widely expected to leave interest rates unchanged, the accompanying statement could have a significant impact on the outlook for rates.

Optimism about a March rate cut has faded recently, with many economists now suggesting the Fed will wait until May to begin lowering rates.

In U.S. economic news, payroll processor ADP released a report showing private sector job growth in the U.S. slowed by more than expected in the month of January.

ADP said private sector employment rose by 107,000 jobs in January after climbing by a downwardly revised 158,000 jobs in December.

Economists had…