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U.S. Futures Slip After Wall Street Rebound as Fed Decision Looms

U.S. Futures Slip After Wall Street Rebound as Fed Decision Looms. Source: Carlos Delgado, CC BY-SA 3.0, via Wikimedia Commons

U.S. stock index futures edged lower Monday evening following a strong regular session rally driven by technology stocks, while oil prices eased slightly amid ongoing uncertainty in the Middle East. S&P 500 Futures slipped 0.2% to 6,745.0, Nasdaq 100 Futures dropped 0.2% to 24,844.0, and Dow Jones Futures declined 0.2% to 47,207.0 around 8:24 PM ET.

Earlier in the session, all three major benchmarks posted solid gains. The Dow Jones Industrial Average advanced 0.8%, the S&P 500 climbed 1.0%, and the Nasdaq Composite surged 1.2%, with technology stocks leading the charge. Chipmakers were among the top performers after Nvidia's annual developer conference drew significant investor optimism. CEO Jensen Huang projected up to $1 trillion in cumulative orders for its Blackwell and Vera Rubin AI systems through 2027, boosting confidence across the semiconductor sector.

Easing crude oil prices also supported equities during the regular session, offering some relief after a prolonged surge tied to escalating Israel-Iran tensions. However, the conflict's third week kept markets on edge, as continued threats to shipping lanes and energy infrastructure near the Strait of Hormuz — a critical global oil transit corridor — raised supply concerns. President Donald Trump confirmed that a proposed coalition to protect oil tankers through the strait remains under discussion and has not been finalized.

Looking ahead, investors are closely watching the Federal Reserve's policy announcement scheduled for Wednesday. The Fed is broadly expected to hold interest rates steady as policymakers weigh persistent inflation risks against geopolitical headwinds. Markets will pay close attention to updated economic forecasts and any commentary from Fed Chair Jerome Powell regarding the timeline for potential rate cuts. On the earnings front, Lululemon Athletica and DocuSign are set to report quarterly results Tuesday, adding another layer of market interest to an already event-heavy week.

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