US stock index futures tread water as rate optimism cools

Investing.com-- U.S. stock index futures moved little in evening deals on Tuesday, tracking a middling session on Wall Street as a recent rally on rate cut hopes cooled, especially as Federal Reserve officials signaled steady rates in the near-term. 

A dearth of more immediate trading cues also made for muted movements in U.S. stocks, as investors adopted a wait-and-see approach before a storm of key economic readings and earnings. 

S&P 500 Futures steadied at 5,214.75 points, while Nasdaq 100 Futures were flat at 18,205.25 points by 19:15 ET (23:15 GMT). Dow Jones Futures hovered around 39,022.0 points.

Wall Street flat as rate optimism cools 

Futures moved little tracking a middling session on Wall Street on Tuesday, as optimism over eventual interest rate cuts was quashed by a string of Fed officials signaling that rates will remain steady in the near-term.

Minneapolis Fed President Neel Kashkari said sticky inflation could keep interest rates unchanged for the rest of the year, even as markets began pricing in a greater chance of a September rate cut following weaker-than-expected nonfarm payrolls data.

But while the labor market appeared to be cooling, inflation is still expected to remain a key point of contention for the Fed. Consumer price index data for April is due next week, anticipation of which also limited moves on Wall Street. 

The S&P 500 rose 0.1% to finish at 5,187.70 points on Tuesday. The NASDAQ Composite fell 0.1% to 16,332.56 points after rallying sharply in recent sessions, while the Dow Jones Industrial Average rose 0.1% to 38,884.26 points. 

Uber, Airbnb earnings on tap 

The first quarter earnings season is set to continue on Wednesday, with reports from Uber Technologies Inc (NYSE:UBER) and Airbnb Inc (NASDAQ:ABNB) due later on Wednesday. 

Uber rose over 2% in aftermarket trade, as markets priced in potentially stronger earnings from the ridesharing giant. Its rival LYFT Inc (NASDAQ:LYFT) rose 4% after posting a smaller loss in the March quarter. 

Airbnb is also expected to clock stronger revenues on a recovery in global travel demand. 

Reddit surges on strong earnings, Upstart tumbles 

Among major aftermarket movers, social media platform Reddit Inc (NYSE:RDDT) surged nearly 15% on stronger-than-expected first-quarter earnings, in the company’s first earnings season as a publicly traded entity. Reddit also offered an upbeat outlook for the second quarter. 

Online lending platform Upstart Holdings Inc (NASDAQ:UPST) sank 18% after it offered weak guidance for the current quarter. 

Electric vehicle maker Rivian Automotive Inc (NASDAQ:RIVN) sank nearly 6% after clocking a bigger-than-expected first-quarter loss, while videogame maker Electronic Arts Inc (NASDAQ:EA) fell nearly 4% on dismal earnings and guidance.