Stock futures up as tech stocks recover; Fed meeting in focus

[June 13, 2017]  By Sruthi Shankar

(Reuters) - U.S. stock index futures were slightly higher on Tuesday as technology shares staged a recovery after a two-day rout, while investors awaited the Federal Reserve to kick off its meeting, where its is almost certain to raise interest rates.

Traders have priced in a 94 percent chance of the Fed raising interest rates. Investors are also looking for more details on the central bank's plans to trim its $4.5 trillion balance sheet.

The Fed is expected to release its decision at 2:00 p.m. ET (1800 GMT) on Wednesday. Fed Chair Janet Yellen is due to hold a press conference at 2:30 p.m. ET.

A bout of profit-taking in richly-valued technology stocks caused the Nasdaq to suffer its worst two-day drop in more than six months on Monday.

However, technology stocks appeared to recover on Tuesday. Apple <AAPL.O>, which had sparked the selloff on Friday, was up 0.78 percent at $146.60 in premarket trading. Other technology heavyweights like Microsoft, Alphabet and Facebook were up marginally.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 2, 2017. REUTERS/Brendan McDermid

The U.S. Treasury Department unveiled a plan on Monday to reduce restrictions that big banks face in their trading operations, ease their annual stress tests, and curb the powers of the Consumer Financial Protection Bureau (CFPB).

Shares of Bank of America, Goldman Sachs and Citigroup were slightly higher in premarket trading on Tuesday.

Tesla  was up 1.57 percent at $364.65 after Berenberg raised its rating on the stock to "buy" from "hold".

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)

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