The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.3% and the actively traded Invesco QQQ Trust (QQQ) was also 0.3% lower in Tuesday's premarket activity as the US Federal Open Market Committee's policy meeting begins.
US stock futures were also lower, with S&P 500 Index futures down 0.3%, Dow Jones Industrial Average futures retreating 0.5%, and Nasdaq futures slipping 0.3% before the start of regular trading.
The NFIB's Small Business Optimism Index rose to 90.5 in May from 89.7 in April, with 22% of owners citing inflation as their top issue and 20% pointing to labor quality. Despite the index's increase, small business owners remain pessimistic, with economic conditions still viewed negatively and the business uncertainty index at its highest since November 2020.
The Q1 Services Survey will be released at 10 am ET.
In premarket action, bitcoin was down by 3.9% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was also 3.9% lower.
Power Play:
Industrial
Industrial Select Sector SPDR Fund (XLI), the Vanguard Industrials Index Fund (VIS), and the iShares US Industrials ETF (IYJ) were inactive.
Target Hospitality's (TH) stock price fell 28% premarket after the company said the US government plans to terminate the South Texas Family Residential Center services agreement with Target's migrant programming partner around Aug. 9.
Winners and Losers:
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) advanced marginally by 0.03%, while the Vanguard Consumer Staples Fund (VDC) was up 1.5%. The iShares US Consumer Staples ETF (IYK), the Consumer Discretionary Select Sector SPDR Fund (XLY), and the VanEck Retail ETF (RTH) were inactive. The SPDR S&P Retail ETF (XRT) was 0.2% lower.
QuantaSing Group (QSG) shares traded up more than 22% pre-bell after the company said that its board approved a buyback program for up to $20 million of its Class A ordinary shares in the form of American depositary shares.
Health Care
The Health Care Select Sector SPDR Fund (XLV) advanced 0.1%. The Vanguard Health Care Index Fund (VHT) was flat, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) retreated 0.2%.
Viridian Therapeutics (VRDN) was up more than 12% premarket after the company said it plans to begin two late-stage clinical trials to evaluate VRDN-003 in patients with active and chronic thyroid eye disease in August.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) retreated 0.2%.
Uranium Energy (UEC) stock was down nearly 5% before Tuesday's opening bell, a day after the company reported a wider fiscal Q3 loss.
Financial
Financial Select Sector SPDR Fund (XLF) retreated by 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was down 1.4%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 1.3% higher.
Hamilton Insurance Group (HG) stock was down 2% pre-bell after the company's Hamilton Insurance DAC said it named Ross Reynolds as chief executive officer to succeed Fiona Marry, who is leaving the company.
Technology
Technology Select Sector SPDR Fund (XLK) lost 0.4%, while the iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) were up inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was up 1.4%, while the iShares Semiconductor ETF (SOXX) fell by 0.4%.
NICE (NICE) shares gained nearly 2% after the company announced a new Unified Communications as a Service product priced at $5 per user per month. The company also reported Monday that it was awarded a $100 million contract in the Asia-Pacific region and approved a $500 million stock buyback plan.
Commodities
Front-month US West Texas Intermediate crude oil retreated 0.2% to $77.58 per barrel on the New York Mercantile Exchange. Natural gas was 5.5% higher at $3.07 per 1 million British Thermal Units. United States Oil Fund (USO) lost 0.3%, while the United States Natural Gas Fund (UNG) rose 4.1%.
Gold futures for August retreated 0.2% to $2,323 an ounce on the Comex, while silver futures fell 2% to $29.29 an ounce. SPDR Gold Shares (GLD) slipped 0.1%, and iShares Silver Trust (SLV) was 1.5% lower.
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