U.S. Stocks Trade Mixed as Fed Decision Nears
U.S. stock futures showed mixed performance on Wednesday as investors waited for the outcome of the Federal Reserve’s latest policy meeting. Markets are looking for guidance on the future path of interest rates.
At 10:27 a.m. ET, the Dow Jones Industrial Average rose 249 points, or 0.5%. The S&P 500 dipped 5 points, or 0.1%, while the NASDAQ Composite slipped 96 points, or 0.4%.
Fed Policy in Focus
The Federal Reserve concludes its two-day meeting later today. A 25-basis-point rate cut is widely expected, which would bring the federal funds rate to a range of 4.00%–4.25%. Signs of cooling in the labor market, including weaker job creation and higher unemployment, have strengthened the case for easing.
Traders see little chance of a larger 50-basis-point cut. Futures markets suggest total rate reductions of 65 to 70 basis points by year-end. Attention will also turn to the Fed’s updated economic projections and the “dot plot,” which could provide clues about policy through 2026.
Investors will closely watch Fed Chair Jerome Powell’s press conference for signals on whether the central bank will continue with gradual easing or move more aggressively if job market weakness persists.
Analysts at ING noted that while inflation remains above target and tariffs keep pressure elevated, risks now lean toward the need for greater economic support. The Fed’s decision is expected at 2 p.m. ET, with Powell speaking at 2:30 p.m.
Earnings and Corporate Moves
General Mills (NYSE:GIS) stock fell after the company reaffirmed its annual outlook but reported a 16% drop in North American sales volumes. Weak demand has raised questions about consumer spending under tariff-driven economic uncertainty.
Apple (NASDAQ:AAPL) also faced pressure, with smartphone sales in China dropping 6% in the weeks before the iPhone 17 launch.
Lyft (NASDAQ:LYFT) shares jumped after announcing a partnership with Waymo to roll out autonomous ride-hailing in Nashville by 2026. Rival Uber (NYSE:UBER) shares slipped on the news.
Workday (NASDAQ:WDAY) rose as Elliott Management revealed a $2 billion stake, backing company leadership. Baidu (NASDAQ:BIDU) gained strongly, boosted by optimism around its AI chip development as China pushes for semiconductor independence.
Oil and Gold Prices
Oil prices edged lower after recent gains. Brent futures fell 0.3% to $68.29 per barrel, while U.S. WTI dropped 0.3% to $64.35. Prices had climbed over 1% on Tuesday amid concerns of supply disruptions from Russian facilities following drone strikes.
Data from the American Petroleum Institute showed a 3.2 million-barrel weekly draw in inventories, pointing to potential confirmation from official government figures later today.
Gold prices slipped slightly from record highs as investors awaited the Fed’s decision. Spot gold traded down 0.3% at $3,688.37 per ounce, after reaching a record $3,702.95 on Tuesday. U.S. gold futures for December also fell 0.3% to $3,713.35.
