U.S. Stock Futures Steady Ahead of Fed Rate Decision

U.S. stock futures were flat Tuesday evening as Wall Street awaited the Federal Reserve’s policy decision, expected to deliver the first interest rate cut of 2025. By 20:19 ET (00:19 GMT), S&P 500 futures edged up 0.1% to 6,673.75, Nasdaq 100 futures gained 0.1% to 24,549.00, and Dow Jones futures rose 0.1% to 46,166.00.

During Tuesday’s session, the Dow slipped 0.3%, while the S&P 500 and Nasdaq Composite each dipped 0.1% after hitting record highs the previous day. Markets are pricing in a 25-basis-point cut, lowering the benchmark rate to 4.00%-4.25%. A larger 50-basis-point cut remains unlikely, though Fed funds futures suggest policymakers may reduce rates by as much as 70 basis points by year-end.

Investors are focused on the Fed’s updated economic projections and dot plot for clues on the longer-term rate outlook through 2026. Remarks from Chair Jerome Powell will be closely watched to see if the central bank leans toward gradual easing or faster cuts in response to labor market weakness. Recent data has shown softer job growth and a higher unemployment rate, strengthening expectations of monetary support.

Meanwhile, U.S. retail sales for August rose 0.6% month-over-month, surpassing forecasts of 0.2% and highlighting consumer resilience despite tighter financial conditions.

In corporate news, Nvidia stock fell 1.6% after reports of weak demand for its new China-focused AI chip and a Chinese antitrust probe. Oracle shares climbed 1.5% on reports it could play a role in keeping TikTok operational in the U.S. Ford slipped 0.6% after announcing up to 1,000 job cuts at its electric vehicle plant in Cologne, Germany, due to slowing demand.

Overall, traders are bracing for a pivotal Fed announcement that could shape market sentiment and U.S. economic growth for the rest of the year.