U.S. inventory futures had been close to flat on Tuesday night as buyers took a breather from final week’s market rally.

Futures tied to the Dow Jones Industrial Common slipped 21 factors, or 0.06%. S&P 500 futures inched down by 0.06% and Nasdaq 100 futures misplaced 0.03%.

Shares of FedEx fell about 3% in prolonged buying and selling after the transport large posted weaker-than-expected income for its most up-to-date quarter.

Earlier on Tuesday, shares closed decrease for the second buying and selling day in a row. The Dow fell 245.25 factors, or 0.72%. The S&P 500 slid 0.47%, and the Nasdaq Composite misplaced 0.16%.

Shares are overbought and in want of a catalyst, in keeping with Quincy Krosby, chief international strategist for LPL Monetary. Certainly, final week the S&P 500 hit its highest stage since April 2022 and posted its fifth consecutive optimistic week.

“With the S&P 500 and Nasdaq marching larger and breaking via key resistance ranges, and underpinned by stronger quantity and broader participation, markets reached short-term overbought ranges on Friday,” she stated by e mail Tuesday. “‘Triple witching’ choices expiration on Friday added to volatility, however the sell-off on Friday wasn’t overly dramatic, leaving markets to digest their beneficial properties, and wait for one more highly effective catalyst.”

Homebuilding shares bucked the downtrend on Tuesday after the most recent information on housing begins and constructing permits got here in stronger than anticipated. The iShares U.S. Dwelling Building ETF (ITB) added 1%.

Elsewhere, Federal Reserve Chair Jerome Powell is ready to testify earlier than the Home Monetary Providers Committee at 10:00 a.m. ET.

On the conclusion of the central financial institution’s assembly final week, policymakers indicated there may very well be two extra quarter-percentage level strikes on the horizon this yr.

“Powell appeared to meander between the necessity to restore value stability, but additionally suggesting that the Fed might wait to see how the economic system responds to the unfolding of the five hundred foundation factors working their method into the broader economic system,” Krosby stated.

With sentiment upbeat and markets “overbought,” “Powell might present a modicum of assist to the market’s advance, but when he means that he is within the hawkish camp, markets might have to proceed to unwind beneficial properties till a extra viable catalyst emerges,” Krosby added.

So far as quarterly outcomes, Winnebago will report earnings earlier than the bell, and KB Dwelling will report after the shut.