New York, New York — U.S. stock futures rose Tuesday evening as investors kept a close watch on ongoing trade negotiations and anticipations surrounding an interest rate announcement by the Federal Reserve set for Wednesday. Futures for the Dow Jones Industrial Average climbed 280 points, or 0.7%, while the S&P 500 and Nasdaq 100 experienced gains of 0.8% and 1%, respectively.
The uptick in futures came on the heels of news that U.S. Treasury Secretary Scott Bessent and top trade officials, including Jamieson Greer, would be meeting with their Chinese counterparts in Switzerland this week. This development sparked optimism among investors, especially after the market had reacted negatively to recent tariff announcements from the Trump administration.
The Fed’s interest rate decision, expected at 2 p.m. ET, is drawing significant attention. According to the CME’s FedWatch tool, there is a nearly 97% chance that the central bank will maintain the current borrowing rate. Market participants are poised to scrutinize comments from Fed Chair Jerome Powell in the subsequent press conference for insights on future policy direction amid growing economic concerns.
The timing of the Federal Reserve meeting is crucial, as Powell has faced heightened scrutiny from President Trump, who has publicly expressed dissatisfaction with the central bank. Economic advisor Kevin Hassett suggested at one point that the administration might consider whether to remove Powell, although Trump later clarified that he currently has no plans to do so.
Investors are also grappling with fears that the administration’s tariff strategy could fuel inflation, complicating the Fed’s approach to interest rate adjustments. Recent market volatility, alongside growing worries about a potential recession, has amplified these concerns. Thierry Wizman, a strategist at Macquarie, emphasized the precarious nature of the current economic climate, urging caution in expecting significant shifts from the Fed.
Meanwhile, traders continued to assess the latest corporate earnings reports. Advanced Micro Devices saw its stock price surge by nearly 5% following a better-than-expected earnings announcement. Conversely, Rivian faced challenges, with its shares dipping nearly 2% after the electric vehicle company reduced its 2025 delivery goals.
Additionally, upcoming consumer credit data, scheduled for release on Wednesday, is expected to provide further insights into economic trends. Other significant earnings reports from major companies, including Disney, Carvana, and Uber, are also on the radar for market participants.
The positive momentum in futures follows a disappointing trading day on Wall Street, where the Dow sank nearly 390 points, or 1%, with the S&P 500 falling approximately 0.8% and the Nasdaq Composite decreasing around 0.9%. As investors navigate these turbulent waters, the outcomes of trade discussions and the Fed’s decisions will play crucial roles in shaping market sentiment in the days ahead.