Markets
US Futures Steady Ahead of Fed Decision as HSBC Drags London Lower
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S&P 500 futures edge down 0.1% before a Fed meeting expected to hold rates, as Coca-Cola, Boeing and UPS report before the bell.
By Emmanuel Cruz ·
U.S. stock index futures were little changed early Tuesday as investors positioned for the Federal Reserve's policy decision on Wednesday and one of the busiest stretches of the earnings season. In early European trading, S&P 500 futures were down 0.1% and Dow futures were flat [1]. On Monday, the S&P 500 rose 0.7% to finish within 1.8% of the record high it set earlier this month, while the Dow added 0.3% and the Nasdaq Composite gained 0.8% [1].
In the bond market, the 10-year Treasury yield stood at 4.98% early Tuesday, down from 5.00% late Friday, while the 2-year yield edged up to 4.71% from 4.69% [2].
European shares opened lower. Germany's DAX slipped 0.1% and France's CAC 40 fell 0.3% in early trading, while Britain's FTSE 100 lost about 1% [1]. HSBC led London lower, falling about 7% in its steepest one-day drop since April 2025 after reporting third-quarter revenue of $18.6 billion, short of analysts' estimate of $19 billion, with a slowdown in its wealth business cited as the main cause, Reuters reported [3]. The UK banking index fell 3.7% to a four-month low, and consumer goods maker Reckitt dropped 4.5% after cutting its annual net revenue growth forecast [3]. British investors are also awaiting the government's budget on Wednesday [3].
Asian markets were split. Japan's Nikkei 225 rose 1.7% and South Korea's Kospi jumped 3.1% as chip stocks rallied, while Hong Kong's Hang Seng fell 0.7% and the Shanghai Composite lost 1.3% [1]. In currency markets, the dollar rose to 157.75 yen from 157.50, and the euro slipped to $1.1154 from $1.1176 [1].
The Fed's two-day meeting ends Wednesday with the federal funds target range at 3.75% to 4.00%, following a quarter-point increase in September [4]. KPMG's base case is a unanimous decision to hold, with some risk of a dissent in favor of tighter policy, and the firm expects the next increase in December [4]. KPMG chief economist Diane Swonk wrote that "September bought time; it did not resolve the inflation problem" [4]. PIMCO also expects a hold with a tightening bias and noted that markets were pricing roughly an 80% chance of no change the week before the meeting [5]. With no new economic projections due at this meeting, PIMCO said attention will center on how Chair Kevin Warsh frames the pause and on how many officials dissent in favor of a hike [5].
Corporate results add to the day's catalysts. Coca-Cola, Boeing, UPS, S&P Global, Royal Caribbean and PayPal are among the companies scheduled to report before the opening bell, according to a Stock Titan calendar that uses Nasdaq consensus data [6]. Coca-Cola is expected to earn $0.87 a share, up from $0.82 a year earlier, while Boeing is forecast to post a loss of $0.21 a share, far narrower than its year-earlier loss of $7.47 [6]. Visa, Seagate Technology, Robinhood Markets and NXP Semiconductors are scheduled to report after the close [6]. Roughly one in three S&P 500 companies reports this week, including Alphabet and Microsoft on Wednesday and Amazon on Thursday [2].
Elsewhere, Meta Platforms plans to raise $35 billion through a stock sale to fund AI investments, and Nvidia, AMD and Broadcom have indicated they may buy a combined $5 billion of the offering [2].
What to watch: the Fed statement and Warsh's press conference on Wednesday, the UK budget the same day, and guidance from this week's megacap technology reports, which will shape views on AI spending at a time when long-term Treasury yields remain close to 5% [2].
Sources:
[1] Associated Press, "Global shares are mixed as investors await central bank rate decisions", October 27, 2026. https://www.news4jax.com/business/2026/10/27/asian-stocks-advance-following-a-rally-on-wall-street-and-oil-prices-fall/
[2] Associated Press, "US futures and Asian stocks advance following a rally on Wall Street", October 27, 2026. https://www.news4jax.com/business/2026/10/27/us-futures-and-asian-stocks-advance-following-a-rally-on-wall-street/
[3] Reuters via MarketScreener, "Britain's FTSE 100 falls as HSBC drags banks lower", October 27, 2026. https://www.marketscreener.com/news/britain-s-ftse-100-falls-as-hsbc-drags-banks-lower-ce785cdddb88fe23
[4] KPMG, "Fed paces itself", October 22, 2026. https://kpmg.com/us/en/articles/2026/october-2026-fed-primer.html
[5] PIMCO via Advisor Perspectives, "October Fed Meeting Preview: A Pause Is Still a Recalibration", October 23, 2026. https://www.advisorperspectives.com/commentaries/2026/10/23/pause-still-recalibration?topic=retirement-income
[6] Stock Titan, "Earnings Calendar for the Week of October 26, 2026", October 26, 2026. https://www.stocktitan.net/articles/earnings-calendar-week-of-october-26-2026
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.