U.S. stock index futures were muted Wednesday after a strong run of gains that pushed the benchmark S&P 500 to over three-week highs, as investors sought more clarity on the Federal Reserve’s plans for interest rate cuts.

The S&P 500 closed higher for a fourth straight session on Tuesday, its best winning run since March, while the blue-chip Dow scored a fifth session of gain in its longest positive run since December 2023.

Markets have mostly traded higher so far in May, as investors took comfort from an upbeat earnings season as well as a recent softer-than-expected labor market report, which tempered concerns about the Fed keeping interest rates higher for longer.

Investors will focus on comments on Fed Vice Chair Philip Jefferson, Boston Fed President Susan Collins and Governor Lisa Cook during the day for fresh clues on the central bank’s monetary easing plans.

With the earnings season at its tail-end and only a few economic reports expected this week, markets are now awaiting next week’s consumer prices reading to gauge if inflation is cooling.

Traders are pricing in a 49% chance of the U.S. central bank cutting interest rates by 25 basis points in September, according to the CME Group’s Fedwatch tool, up from 43% a week ago. They are also pricing in a 36% chance of another rate cut in December.

By 5:56 a.m. ET, S&P 500 e-minis were up 0.25 points. Nasdaq 100 e-minis slipped 3.5 points, or 0.02%, and Dow e-minis were up 13 points, or 0.03%

Overall, the first-quarter earnings have been much better than expected. Of the 424 S&P 500 companies that reported through Tuesday, nearly 78% topped analysts’ estimates, according to LSEG data. In a typical quarter, 67% beat estimates.

Uber, Fox Corp. and Philip Morris, among other U.S. companies, will report results before the opening bell.

Reddit climbed nearly 14% premarket after the social media platform said it could post an adjusted profit in the second quarter, thanks to its booming advertising business and content-licensing deals with AI companies.

Lyft climbed 5.4% after the ride-hailing company projected higher-than-expected gross bookings and a core profit for the current quarter. Rival Uber also gained 3.3%.

Rivian slid 4.3% after the electric-pickup truck maker stuck to a 2024 production forecast that was well below Wall Street targets and reported a wider-than-expected first-quarter loss as it ended a weeks-long manufacturing halt.


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