US stock futures rose slightly on Wednesday as investors awaited the Federal Reserve’s interest rate decision and a wave of earnings from tech giants including Apple, Microsoft, Meta, Alphabet, and Amazon.
US stock futures ticked higher on Wednesday morning as investors positioned themselves ahead of a pivotal Federal Reserve policy decision and a packed lineup of Big Tech earnings that could set the tone for global markets.
Futures tied to the Dow Jones Industrial Average slipped 0.1%, while S&P 500 and Nasdaq 100 contracts gained 0.2% and 0.3%, respectively. The modest moves come after another record-setting session on Wall Street, where all three major indexes closed at new highs.
On Tuesday, the S&P 500 briefly crossed 6,900 points for the first time, nearing the symbolic 7,000 mark. The Dow Jones added 0.3%, while the Nasdaq Composite led gains with a 0.8% advance, continuing its 2025 rally powered largely by the technology sector.
Investor enthusiasm this week remains firmly centered on technology. Nvidia (NVDA) once again led the charge, closing at an all-time high and extending gains by another 1.3% in after-hours trading.
The AI chip giant unveiled a series of major partnerships — including deals with the US government, Uber, Eli Lilly, and Oracle — along with new 6G network collaborations with Cisco and T-Mobile.
These announcements reinforce Nvidia’s position as the centerpiece of the global AI ecosystem, while also fueling optimism across the broader “Magnificent Seven” group — Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla.
According to analysts at Morgan Stanley, the Big Tech sector continues to act as “the stabilizing core” for US equities amid ongoing uncertainty about inflation, interest rates, and global growth.
The spotlight now turns squarely to the Federal Reserve, which is set to announce its latest interest rate decision later today.
Markets are overwhelmingly expecting a 25-basis-point rate cut, the first since July, as policymakers respond to signs of slowing economic growth and cooling inflation.
According to the CME FedWatch Tool, traders are pricing in a 98% probability of a quarter-point cut. However, what truly matters to investors is Fed Chair Jerome Powell’s tone and his forward guidance regarding the pace of future easing.
John Briggs, head of macro strategy at NatWest Markets, noted:
“Powell will likely strike a balanced tone — acknowledging progress on inflation without committing to a specific path of further cuts. That would be enough to keep markets stable but prevent them from overheating.”
Adding to the cautiously positive sentiment, reports from Bloomberg indicate progress in ongoing US–China trade discussions, easing fears of new tariffs and rekindling hopes for improved cooperation.
President Donald Trump is also scheduled to visit South Korea this week, where he is expected to meet Chinese President Xi Jinping, signaling a potential diplomatic thaw after months of escalating tensions.
Meanwhile, robust earnings from sectors such as retail, pharmaceuticals, and energy have further strengthened investor confidence that the US economy remains resilient, even after more than a year of elevated interest rates.
This week marks the peak of the fourth-quarter earnings season, with nearly all members of the “Magnificent Seven” reporting results.
Wednesday: Alphabet (Google), Meta Platforms, and Microsoft will post their quarterly results after the bell.
Thursday: Apple and Amazon will take the stage, rounding out a potentially market-defining week.
Analysts expect strong numbers from AI-related infrastructure spending and cloud computing services. However, any disappointment could trigger short-term pullbacks, given the group’s heavy weighting in the S&P 500.
If results meet or exceed expectations, the index could surge past the 7,000 mark for the first time in history. But even a minor earnings miss from one of the major players could dampen the rally quickly.
Cooling inflation and expectations of rate cuts are supporting equity valuations.
Big Tech earnings momentum remains strong, especially in AI and cloud sectors.
Signs of easing trade tensions between the US and China are stabilizing global sentiment.
Valuations remain at record highs, leaving limited room for disappointment.
The Fed’s communication could shift market expectations if Powell sounds overly cautious.
Geopolitical and election-related uncertainty could add volatility through year-end.
Wall Street is entering one of its most consequential weeks of 2025, with monetary policy, corporate earnings, and global trade dynamics converging simultaneously.
If the Fed confirms a rate cut and Big Tech delivers strong results, major US indexes could continue breaking new records into November. Conversely, any signal of hesitation from policymakers or a stumble in Big Tech earnings could trigger short-term corrections.
Still, most analysts agree that the long-term US market outlook remains positive, supported by the continued dominance of technology and the likelihood of further monetary easing into 2026.
1. Why are US stock futures rising even as investors remain cautious?
Because optimism about a potential Fed rate cut and strong Big Tech performance is balancing out investor caution ahead of key announcements.
2. Will the Federal Reserve cut interest rates?
Yes, markets overwhelmingly expect a 25-basis-point rate cut — the first since July — though the focus will be on Powell’s comments about future policy.
3. How will Big Tech earnings affect the market?
Given their massive market weight, results from Apple, Microsoft, Meta, Alphabet, and Amazon could set the near-term direction for the S&P 500 and Nasdaq.
4. What should investors watch this week?
Key Fed statements, Big Tech earnings reactions, and updates on US–China trade talks will all be critical drivers of market sentiment.
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