US stock futures muted ahead of Fed rate decision; tariff jitters persist

Investing.com-- U.S. stock index futures moved little on Tuesday evening as investors hunkered down before the conclusion of a Federal Reserve meeting where the central bank is likely to keep interest rates unchanged.

Futures steadied after a negative session on Wall Street, which fell on Tuesday as a two-day rebound from correction territory largely petered out. 

Losses were driven by sustained selling in technology stocks after an artificial intelligence conference hosted by Nvidia provided few new cues. Persistent concerns over higher trade tariffs under President Donald Trump also weighed, as did speculation over slowing economic growth. 

S&P 500 Futures steadied at 5,669.0 points, while Nasdaq 100 Futures fell slightly to 19,697.50 points by 19:27 ET (23:27 GMT). Dow Jones Futures were flat at 41,947.0 points. 

Fed expected to hold rates, outlook uncertain 

The Fed is widely expected to leave its benchmark interest rate unchanged at 4.50% on Wednesday, its second consecutive meeting of keeping interest rates unchanged. 

Bets on a hold come amid increasing uncertainty over the U.S. economy, with investors and policymakers waiting to gauge the impact of President Donald Trump’s policies.

The Fed is also set to release its updated summary of economic projections, which could provide insight into just how much further the central bank plans to cut interest rates this year. 

The central bank had kept rates steady in January after reducing them by 1% through 2024. While this was driven chiefly by signs of cooling inflation, price pressures were seen turning sticky through late-2024. 

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The Fed has cited softer inflation as the biggest motivator for cutting rates further. But policymakers have expressed concerns that Trump’s tariffs will underpin price pressures in the medium-to-long term. 

Wall St dips on tech losses; tariff, recession jitters persist 

Wall Street indexes fell on Tuesday as a two-day rebound from six-month lows largely petered out. Tech losses weighed, as did persistent concerns over higher Trump tariffs and a recession. 

Trump repeated his threats that reciprocal tariffs against major U.S. trading partners will be enforced from April 2. He also reiterated plans for automobile and commodity tariffs. 

Trump has warned of some near-term economic turbulence as he carries out his agenda. Investors fear that trade-related disruptions will undermine U.S. economic growth.

Among tech decliners, NVIDIA Corporation (NASDAQ:NVDA) slid over 3%, extending a recent downturn even as CEO Jensen Huang said the chipmaker was well placed to capitalize on a shift in artificial intelligence towards inference from training. The stock fell 0.6% in afterhours trade.

Tesla Inc (NASDAQ:TSLA) recovered 1.2% in aftermarket trade following a 5.3% tumble during the session, amid persistent concerns over slowing sales, a deteriorating brand image, and growing public outrage over CEO Elon Musk’s actions with the Trump administration.

The S&P 500 fell 1.1% to 5,614.67 points, while the NASDAQ Composite slid 1.7% to 17,504.12 points on Tuesday. The Dow Jones Industrial Average fell 0.6% to 41,581.31 points. 

Wall Street was hammered over the past month by mounting fears of a U.S. economic slowdown, especially amid uncertainty over the impact of Trump’s tariffs.

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