By Devik Jain

(Reuters) – U.S. stock market futures dropped on Tuesday. The decline was due to a small easing of record Wall Street indexes highs. It also came as investors took caution before the Federal Reserve’s anticipated move to reduce its monthly bond purchases.

Bank of America Corp (NYSE): Major Wall Street lender Bank of America Corp Wells Fargo (NYSE:) & Co, Goldman Sachs (NYSE:), Citigroup (NYSE: Morgan Stanley Pre-market trading fell between 0.4% & 0.6% for the NYSE:

Tesla (NASDAQ) Inc dropped 5.2% to be the largest on futures tracking of the.

On Monday, shares of the maker of electric cars closed at record levels. They have gained 18.8% in five sessions.

Australia’s central bank has abandoned its ultra-low bond yield target on Tuesday. It now opens up the possibility for a earlier rise in cash rates.

On Wednesday, the U.S. central banking will approve plans for reducing its support of the largest economy in the world during the pandemic. However, the focus will be on comments about interest rates as well as how long-lasting the current surge in inflation.

Ipek Ozkardeskaya is a senior analyst with Swissquote Bank. “Buying less bonds doesn’t mean that you should stop buying them: It’s not tighter monetary policies, but it is less expansive. That policy should continue to support higher inflation.” 

The Fed meeting may still have a significant impact on the market, even though we are aware of its concrete outcome, which will be the beginning bell for the QE tapering. However, there is no denying that the risk remains tilted towards the hawkish.

Wall Street has seen unprecedented levels of policy and monetary stimulus that helped it rebound strongly from last year’s pandemic-driven slump. U.S. stocks have reached new heights due to this and a more positive third-quarter reporting period.

An analyst had expected that 82.1% of the 280 listed companies would report earnings by Monday. Refinitiv IBES data shows that profits are forecast to rise 39.3% annually for the quarter.

6.36 a.m. ET fell 8 points or 0.02%. ET was down 2.75 point or 0.06% and ET was down 31.75 or 0.2%.

Clorox Inc (NYSE:) rose 1.6% on the back of positive results in its first quarter.

Simon Property Group (NYSE 🙂 gained 4.2% following an increase in the profit forecast and quarterly dividend for mall operator Mall Operator.

Pfizer Inc (NYSE: ) gained 2.4%, after drugmaker Inc raised its full year sales forecast for COVID-19 vaccine at $36 billion.