Stock Futures Steady as Investors Await Fed’s Interest Rate Decision
Stock futures remained largely unchanged on Wednesday as investors shifted their focus to the Federal Reserve’s first interest rate decision of 2025.
Futures linked to the Dow Jones Industrial Average dipped by 11 points, while Nasdaq 100 futures climbed 0.4%. Meanwhile, S&P 500 futures edged up by less than 0.1%.
On Tuesday, tech stocks led the charge, driving the S&P 500 higher and pushing the Nasdaq Composite up by 2%. This rebound followed Monday’s sharp sell-off, triggered by concerns over China’s DeepSeek and its potential impact on the artificial intelligence market. Notably, Nvidia, which suffered a steep 17% drop on Monday, rebounded nearly 9% on Tuesday.
“As far as the DeepSeek news over the weekend, at the end of the day today, there really hasn’t been that much of an impact on a market-wide basis,” said Paul Hickey, co-founder of Bespoke Investment Group, during CNBC’s Closing Bell: Overtime on Tuesday.
Fed Decision in Focus
The Federal Reserve’s interest rate decision on Wednesday is now the key event for investors, alongside Fed Chair Jerome Powell’s press conference. According to CME Group data, Fed funds futures indicate nearly a 100% probability that the central bank will keep rates steady at the current target range of 4.25% to 4.5%.
“When it comes to the Fed, they’re widely not expected to do anything tomorrow, and that’s a good thing. The less the Fed has to do, the better it is for the market, in our view,” Hickey added.
Investors will also closely monitor Powell’s remarks, as this will be his first press conference during President Donald Trump’s second term. The relationship between Powell and Trump has historically been tense, dating back to Trump’s first term. The president has already stated that he would “demand that interest rates drop immediately.”
Big Tech Earnings on Deck
A series of major tech earnings reports are expected Wednesday afternoon, with Meta Platforms, Microsoft, and Tesla set to announce their latest quarterly results.
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