US futures stayed stable with attention focused on the Federal Reserve meeting and earnings reports from megacap firms

U.S. stock index futures were largely unchanged late Tuesday as investors remained cautious ahead of the Federal Reserve’s interest rate decision and a busy earnings schedule featuring major technology leaders.

S&P 500 futures edged up 0.1% to 7,017.50, while Nasdaq 100 futures rose 0.3% to 26,155.75 by 20:10 ET (00:10 GMT). Dow Jones futures were flat at 49,154.0.

S&P 500 closes at a record as Dow edges lower on Medicare concerns

During Tuesday’s regular session, the S&P 500 climbed 0.4% to a record closing high, extending its advance as investors rotated back into growth stocks and responded positively to broadly solid earnings results. Gains in technology shares led the move, pushing the benchmark to a fresh peak.

The Nasdaq Composite jumped 0.9%, driven by strength in megacap stocks.

Meanwhile, the Dow Jones Industrial Average fell 0.8%, weighed down by steep declines in healthcare and insurance shares. Major health insurers came under pressure after the U.S. government released a Medicare Advantage payment plan that the market perceived as less favorable than anticipated.

Markets focus on Fed decision and megacap earnings

Investor focus has shifted squarely to the Federal Reserve, which kicked off its two-day policy meeting on Tuesday. The central bank is widely expected to leave interest rates unchanged when it delivers its decision on Wednesday, with markets pricing in a pause as policymakers assess easing but still-elevated inflation alongside signs of steady economic growth and a resilient labor market.

Close attention will be paid to Fed Chair Jerome Powell’s remarks for indications on how long rates may remain at current levels and when eventual cuts could begin.

“The key will be any dissent and the Fed’s communication, particularly around questions of central bank independence,” ING analysts said, adding that the decision will also be overshadowed by President Trump’s upcoming nomination of a new Fed chair.

Corporate earnings are another major catalyst this week, with four members of the so-called “Magnificent Seven” technology group set to report. Tesla, Meta Platforms and Microsoft are scheduled to post results on Wednesday, followed by Apple on Thursday.

Given their heavy weighting in major equity indexes, guidance from these companies on artificial intelligence investment, cloud demand and consumer trends is expected to play a key role in shaping near-term market direction.

Sources: Investing