(Editor’s note: The future prices of benchmark tracking ETFs, the lede, the headline, and the earnings were updated in the story.)

U.S. stock futures were swinging between gains and losses on Wednesday following Tuesday's mixed close. Futures of major benchmark indices were mixed.

While the monetary policy aspect of Wednesday's Federal Reserve meeting is expected to be routine, markets are bracing for a potentially tense press conference from Chair Jerome Powell as subpoenas and presidential pressure overshadow the proceedings.

The CME Group's FedWatch tool‘s projections show markets pricing a 97.2% likelihood of the Federal Reserve leaving the current interest rates unchanged in January.

Meanwhile, the 10-year Treasury bond yielded 4.24%, and the two-year bond was at 3.57%.

Stocks In Focus

Starbucks

• SBUX maintains a stronger price trend over the short, medium, and long terms with a poor value ranking, as per Benzinga’s Edge Stock Rankings.

Microsoft

• Microsoft Corp. (NASDAQ:MSFT) rose 0.087% ahead of its earnings scheduled to be released after the closing bell. Analysts expect quarterly earnings of $3.97 per share on revenue of $80.27 billion.

• Benzinga’s Edge Stock Rankings indicate that MSFT maintains a weak price trend in the medium term but a strong trend over the short and long terms, with a good quality ranking.

Tesla

• Tesla Inc. (NASDAQ:TSLA) advanced 0.23% as it is projected to post quarterly earnings of 45 cents per share on revenue of $24.78 billion after the closing bell.

• TSLA maintains a stronger price trend over the long term but a weak trend in the short and medium terms, with a moderate quality ranking, as per Benzinga’s Edge Stock Rankings.

Seagate Technology Holdings

• Seagate Technology Holdings PLC (NASDAQ:STX) jumped 10.02% after reporting better-than-expected revenue and earnings, along with strong guidance.

• STX maintains a stronger price trend over the short, medium, and long terms with a poor value ranking, as per Benzinga’s Edge Stock Rankings.

Packaging Corp

• Benzinga’s Edge Stock Rankings shows that PKG maintains a stronger price trend over the long, short, and medium terms with a moderate quality ranking.

Cues From Last Session

While energy, information technology, and utilities stocks recorded the biggest gains on Tuesday, health care and financials bucked the trend to close lower.

Insights From Analysts

Jeffrey Roach, Chief Economist at LPL Financial, forecasts a resilient U.S. economy in 2026, driven by a “productivity pop” that balances slowing labor demand.

He projects real economic growth to reach 2.5% year-over-year, with nominal growth surpassing 5%.

Roach emphasizes that “productivity growth is the key mechanism that allows the U.S. economy to expand above its long-run trend without reigniting inflation.”

This surge in efficiency, particularly from early AI adoption and technology, is expected to counter “warning signs from the job market.”

Contrasting with the consensus, Roach argues, “Despite a consensus view that we have a labor supply problem, our view is that we instead have a labor demand problem,” predicting that monthly job gains will slow to around 40,000.

Regarding the markets, his team maintains a “tactical neutral stance on equities,” advising investors to brace for volatility while favoring large-cap growth stocks and the communication services sector.

Ultimately, Roach sees productivity as the stabilizer supporting continued U.S. economic exceptionalism.

Upcoming Economic Data

Here's what investors will be keeping an eye on Wednesday.

• FOMC will announce its interest-rate decision at 2:00 p.m. and Fed Chair Powell will hold a press conference at 2:30 p.m. ET.

Commodities, Gold, Crypto, And Global Equity Markets

Crude oil futures were trading lower in the early New York session by 0.22% to hover around $62.25 per barrel.

Gold Spot US Dollar rose 1.75% to hover around $5,272.90 per ounce. Its last record high stood at $5,311.68 per ounce. The U.S. Dollar Index spot was 0.08% lower at the 96.1410 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.52% higher at $89,223.76 per coin.

Asian markets closed higher on Wednesday, except Australia's ASX 200 index. Hong Kong's Hang Seng, China’s CSI 300, South Korea's Kospi, Japan's Nikkei 225, and India’s Nifty 50 indices rose. European markets were mostly lower in early trade.

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