Futures edge higher as Fed decision looms

U.S. stocks recovered some ground before the bell on Wednesday as investors waited for the Federal Reserve’s policy decision. Investors are particularly interested in gleaning insights into future rate movements and the economic outlook from the central bank. S&P 500 Futures gained 0.2%, while Nasdaq 100 Futures rose 0.3%. Dow Jones Industrial Average Futures remained little changed. The stock market has recently experienced a sharp sell-off, and investors are looking toward the Fed for guidance.

Stocks To Watch | 📊Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket pic.twitter.com/2jBwZYIbXj

— ET NOW (@ETNOWlive) March 19, 2025

Although rate cuts are seen as unlikely for March, the policy direction and Fed Chair Jerome Powell’s press conference will be crucial in setting expectations for future monetary easing. “Powell post-FOMC will have to reassure markets that growth remains healthy and inflation’s trajectory still points to 2% as confidence is wavering,” Evercore ISI’s Julian Emanuel noted. Turkish financial markets plunged after the arrest of Istanbul’s mayor, a key rival to President Erdogan. The main index dropped so sharply that it triggered a trading halt, reflecting concerns over Turkey’s political stability. Nvidia shares rose 1.3% in premarket trading, recovering some of the losses from Tuesday’s decline.

#USMarket | NASDAQ 100 extends decline to 2%; S&P 500 off by 1.3% pic.twitter.com/pHkLuxuKWL

— ET NOW (@ETNOWlive) March 18, 2025

Investors await Fed’s policy guidance

Investors are digesting news from the company’s annual GTC event, which included CEO Jensen Huang’s keynote that showcased Nvidia’s advancements in AI. Tesla shares rebounded by 3% in premarket trading. Howard Lutnick’s Cantor Fitzgerald upgraded Tesla to a Buy rating, considering the recent sell-off as an attractive entry point for investors. Despite its struggles, Tesla remains a focal point in the market with ongoing competitive pressures. General Mills shares fell nearly 4% premarket as the company struggles with consumers switching to private-label brands, affecting its core business of cereal and snacks. Intel’s stock slipped 2.5% premarket. Investors are weighing the challenges and incoming strategies to revamp its business.

FED TO MAKE INTEREST-RATE DECISION; POWELL TO SPEAK

The Fed is expected to hold rates steady Wednesday and signal one or two cuts this year. Powell’s comments may hint at tariff concerns.

Latest moves:
— U.S. futures point to slight gains after Tuesday’s tech-led drop.
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— *Walter Bloomberg (@DeItaone) March 19, 2025

U.S. STOCK INDEXES EXTEND DECLINES; S&P 500 DOWN 1.2%, NASDAQ DOWN 2%, DOW DOWN 0.7%

— *Walter Bloomberg (@DeItaone) March 18, 2025

Investors watch for the Fed’s Summary of Economic Projections (SEP) at 2 p.m. ET for clues on the economic outlook and potential rate paths. Wall Street seeks clarity on interest rates, particularly in light of geopolitical uncertainties and Trump’s tariffs impacting the economy. “Fed Chair Powell is probably going to repeat ‘uncertainty’ multiple times,” said Wil Stith, portfolio manager at Wilmington Trust. Oil prices continued to slide following a 30-day ceasefire agreement between Moscow and Kyiv, opening the door for an increase in energy supply. Bank of America recommends caution as it fears China’s stock rally may soon face a correction. As the market gears up for the Fed’s decision, investors remain cautious yet hopeful for guidance that could stabilize the current economic landscape. Stay tuned for real-time updates and further analysis following the Fed’s policy announcement. Image Credits: Photo by Tech Daily on Unsplash