MARKET SNAPSHOT: U.S. Tech Stocks Poised To Rally After Rout, As Eyes Turn Toward The Fed

By Barbara Kollmeyer, MarketWatch Features Dow Jones Newswires

Beaten-down technology stocks were tentatively poised for the first gain in three sessions on Tuesday, as U.S. stock futures edged higher ahead of the start of a Federal Reserve meeting.

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Dow Jones Industrial Average futures rose 25 points, or 0.1%, to 21,209, while S&P 500 futures added 4.1 points, or 0.2%, to 2,430.50. Nasdaq-100 futures advanced 7.5 points, or 0.1%, to 5,726.75.

On Monday, the Nasdaq Composite and the S&P 500 marked a second day of losses (http://www.marketwatch.com/story/tech-stocks-set-to-slump-again-as-nasdaq-100-futures-drop-1-2017-06-12), dropping 0.5% and 0.1% respectively as Apple Inc. (AAPL) and other major tech names came under pressure again. The Dow industrials snapped a three-session winning streak to finish 0.2% lower.

Read:Don't panic -- this shows tech stocks' slide may well be a buying opportunity (http://www.marketwatch.com/story/whats-next-for-technology-stocks-bloodbath-or-bliss-2017-06-12)

And see: What sparked the Nasdaq's worst two-session, tech-fueled rout in 9 months (http://www.marketwatch.com/story/what-sparked-the-nasdaqs-worst-two-session-rout-in-9-months-2017-06-12)

On the bright side, Chris Weston, chief market strategist at IG, said alongside the tech selling, investors have been rotating into the energy and financial sectors, which could potentially offer up better returns.

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Weston doesn't really think the 10% decline "that many had been talking about on Friday," will come to pass, he said in a note to clients.

FOMC kicks off: Investors are turning their attention to the two-day Federal Open Market Committee meeting that wraps up Wednesday with a press conference with Fed Chairwoman Janet Yellen.

Market observers are nearly unanimous in the view that the fed funds rate will be lifted, with a 95.8% chance of an interest rate increase, according to the CME Group (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect=/trading/interest-rates/fed-funds.html).

Investors will scrutinize the Fed's words to see if they support expectations that the central bank will signal another interest rate hike is coming this year.

Check out: Here's what the Fed will signal when it hikes interest rates (http://www.marketwatch.com/story/heres-what-the-fed-will-signal-when-it-hikes-interest-rates-2017-06-12)

Economic data: The National Federation of Independent Business small-business index for May is scheduled for release at 6 a.m. Eastern Time. A report on producer prices for the same month is due at 8:30 a.m. Eastern.

Stock movers:Electronic Arts Inc.(EA) shares could be active as the E3 video games trade show officially kicks off in Los Angeles on Tuesday.

Other markets: European stocks were firmer across the board (http://www.marketwatch.com/story/european-stocks-rise-as-techs-move-toward-recouping-losses-2017-06-13), lifted by rises for tech stocks. Asian markets shook off Wall Street's woes and posted gains (http://www.marketwatch.com/story/asian-markets-shake-off-wall-streets-woes-post-gains-2017-06-12).

The dollar fell, chiefly against the British pound , which rose after a bigger-than-expected gain in U.K. inflation. Oil prices shifted higher (http://www.marketwatch.com/story/oil-prices-higher-again-but-supply-glut-hangs-over-market-2017-06-13), and gold prices pulled back.

(END) Dow Jones Newswires

June 13, 2017 06:31 ET (10:31 GMT)