Wall Street is heading into a high-stakes trading day on Wednesday with a sense of caution, as Dow Futures suggest a muted start as investors look ahead to major events.
The big focus is on two things: the Fed’s interest rate decision and earnings from Microsoft and Meta after the bell.
The S&P 500 is still trading near record highs, but there’s a cautious feel in the air.
Inflation hasn’t gone away, and investors are still trying to figure out how sticky it really is.
Add to that unresolved trade tensions and the risk of new tariffs, and it’s not surprising that many traders are holding back until they see how today unfolds.
5 things to know before Wall Street opens today
1. The US Fed is all set to announce its latest interest rate decision later today, and while no changes are expected, the investors will keep a close eye on Chair Jerome Powell’s press conference.
Investors aren’t just listening for what the Fed does; they are interested in what it might do next.
Markets are betting on a possible rate cut as early as September, but Powell is likely to tread carefully.
2. Investors are on edge as tech giants like Microsoft and Meta will report their Q2 results after the closing bell today.
As two key companies in the ‘Magnificent 7’ group, Microsoft and Meta’s earnings could carry outsized influence on the broader market mood.
With recent volatility still fresh in traders’ minds, these earnings will be closely watched for signs of strength or issues in the sector.
A strong showing could lift sentiment heading into tomorrow’s session. But any disappointment may ripple across tech names and weigh on momentum.
3. Stock futures are treading with caution this morning as investors seem to be holding back ahead of key economic data and more earnings reports.
The S&P 500 and Nasdaq 100 are still hovering near record highs.
But after a strong run, markets took a breather yesterday. Mixed earnings results kept gains in check and left traders cautious.
4. Oil prices have stabilized after a recent run-up linked to supply concerns and geopolitical tensions.
The US dollar index is slightly weaker this morning, while investors monitor how global trade negotiations and sanctions, including US pressure on Russia, may affect commodity flows.
5. The clock’s ticking on high-stakes trade talks between the US, Canada, Mexico, and South Korea.
If no deals are reached soon, new US tariffs could come into play, and that has global supply chains on edge.
Industries like auto and manufacturing are already feeling the heat. Both Porsche and Mercedes-Benz have issued cautious outlooks, blaming the uncertainty around tariffs and the ripple effects on production and pricing.
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