Wall St set to open up lower after election surge; Fed meet in focus

US stock indexes were set to dip on Thursday, after a rally in the last session that has been spurred by relief right after the midterm elections, with investor focus shifting into the Federal Reserve’s interest decision.

The S&P 500 futures pointed to your 0.35% opening loss, with investors punishing shares of chipmaker Qualcomm and generic drugmaker Perrigo after their weak forecasts.

Stocks gained in excess of 2% on Wednesday after Americans voted for any divided Congress, which had been largely anticipated by investors who raised bets so it will be positive for stocks.

While it would cause it to harder for President Donald Trump to proceed new legislations including additional tax cuts, investors are hoping for compromise on policies which include increasing infrastructure spending.

Despite the dip in futures, which in line with traders was natural after strong gains seen on Wednesday, investors are positive about the result.

“The overall sentiment is I would buy in to a split Congress, because it probably means nothing will happen beyond Washington,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in Los angeles.

The Fed, that’s set to liberate its rate decision at 2:00 pm ET, is anticipated to go out of home interest rates unchanged, nevertheless the statement that follows could lay the earth for any fourth rate hike in December likely this year.

A steep selloff in October has had the S&P 500 down 4.2% from the record high, with investors worried the US economy could gather more steam and let the Fed to increase loan rates further.

However, a few of those worries were put to rest by Wednesday’s election results, which reduced it can be of further corporate tax cuts via the Trump administration.

At 8:49 a.m. ET, Dow e-minis were down 64 points, or 0.24%. S&P 500 e-minis were down 11 points, or 0.39% and Nasdaq 100 e-minis were down 41.75 points, or 0.58%.

Qualcomm fell 8.1% in premarket trading following your chipmaker forecast sales revenue for that holiday shopping quarter below analysts’ estimates, while it took a success within the lack of chip sales to Apple Inc.

Perrigo Co dropped 10.0% following your company cut full-year earnings forecast on lowered expectations from its prescription pharmaceuticals.

TripAdvisor Inc jumped 7.5 after the hotel search website reported better-than-expected third-quarter profit.