U.S. stock futures were little changed on Tuesday evening after Wall Street ended slightly lower, as the Federal Reserve kicked off its policy meeting that is widely expected to deliver its first rate cut of the year.
S&P 500 Futures inched 0.1% higher to 6,673.75 points, while Nasdaq 100 Futures gained 0.1% to 24,549.00 points by 20:19 ET (00:19 GMT). Dow Jones Futures also ticked up 0.1% to 46,166.00 points.
Fed meeting underway; policy outlook in focus In the regular session on Tuesday, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 and NASDAQ Composite slipped 0.1% each, after hitting record highs in the previous session.
Markets have fully priced in a 25-basis-point cut when the Fed concludes its two-day meeting on Wednesday, which would bring the benchmark federal funds rate to a range of 4.00%-4.25%.
Signs of cooling in the labor market, including slower job creation and a higher unemployment rate, have reinforced expectations that the Fed will move to support growth.
Traders see only a slim chance of a larger half-point move. Fed funds futures suggest policymakers could lower borrowing costs by a total of 65 to 70 basis points by year-end.
Attention is squarely on the Fed’s updated economic projections and its so-called dot plot, which will provide clues on the path of interest rates into 2026.
Investors will also scrutinize remarks from Chair Jerome Powell for guidance on whether the central bank intends to stick with gradual easing or act more aggressively if the labor market softens further.
Meanwhile, data on Tuesday showed that U.S. retail sales for August rose 0.6% month-on-month, beating expectations of 0.2% and underscoring consumer resilience.
Nvidia falls amid China woes; Ford announces job cuts In the corporate sector, Nvidia (NASDAQ:NVDA) shares closed 1.6% lower on Tuesday, pressured by China’s probe into the company for breaching anti-monopoly laws.
A Reuters report stated that Nvidia’s newest AI chip, RTX6000D, tailored for the Chinese market, saw only lukewarm demand with some major tech firms opting not to place orders.
Oracle (NYSE:ORCL) stock rose 1.5% after CBS News reported that the cloud computing giant is among a consortium of firms that would enable TikTok to continue operations in the U.S. if a Sino-U.S. framework deal were reached.
Ford (NYSE:F) shares edged 0.6% lower after it announced plans to cut up to 1,000 jobs in electric car production in the German city of Cologne due to weak demand.
