U.S. Futures Edge Higher as Markets Await Fed Decision

U.S. stock index futures inched up on Wednesday as investors awaited the Federal Reserve’s rate decision and its updated economic outlook for clues on the trajectory of monetary policy.

Market Snapshot (06:40 ET / 10:40 GMT):

• Dow Jones Futures: +45 points (+0.1%)
• S&P 500 Futures: +15 points (+0.3%)
• Nasdaq 100 Futures: +65 points (+0.3%)

This slight uptick comes after Wall Street fell on Tuesday, with major indexes retreating following a brief recovery from recent lows:

• S&P 500: -1.1%
• Nasdaq Composite: -1.7%
• Dow Jones Industrial Average: -0.6%

Fed Policy Decision in Focus

• The Federal Reserve is widely expected to hold rates at 4.50%, marking its second consecutive pause after a series of rate cuts in 2024.
• Key questions remain:
  • How many more rate cuts are expected this year?
  • Will Trump’s trade policies and tariffs create inflationary pressure, delaying rate reductions?
• The Fed’s updated economic projections will provide a clearer picture of policymakers’ stance on growth, inflation, and future rate moves.

With ongoing concerns about U.S. economic growth, trade uncertainty, and inflation risks, investors are on edge ahead of the Fed’s policy statement and Chair Jerome Powell’s press conference later today.