Nasdaq 100: Powell’s Fed Decision, Nvidia’s AI Battle, Microsoft, Tesla, Meta Set Tone

S&P 500 Futures Slide Ahead of Fed Decision and Tech Earnings

U.S. stock futures edged lower Wednesday as traders positioned ahead of the market open, the Federal Reserve’s interest rate decision, and a wave of Big Tech earnings. While the central bank is expected to keep rates steady, Chair Jerome Powell’s comments could influence expectations on future policy moves.

Futures tied to the S&P 500 fell 0.3%, while Dow Jones Industrial Average futures dropped 81 points, or 0.2%. Nasdaq 100 futures dipped less than 0.1%. This cautious tone follows Tuesday’s rebound, where tech stocks led a recovery after Monday’s AI-driven sell-off.

How Are Stocks Moving Before the Open?

As the market prepares to open at 14:30 GMT, several stocks are already making notable moves in premarket trading.

Nvidia fell 2% after jumping nearly 9% on Tuesday. Investors are debating whether its rebound was a dead-cat bounce or a sign of resilience following Monday’s historic $600 billion market cap wipeout.

ASML climbed 5% after reporting a 169% surge in fourth-quarter net bookings, signaling strong demand for chipmaking tools. The upbeat results lifted other semiconductor equipment stocks, with Lam Research up 3%, while Applied Materials and KLA Corp. gained more than 2%.

F5 Networks soared nearly 14% after issuing a stronger-than-expected fiscal second-quarter outlook, while Nextracker surged over 24% on earnings and revenue beats.

T-Mobile US rose 6% following an earnings beat and stronger-than-expected full-year guidance.

On the downside, LendingClub tumbled 18% after delivering a weak outlook, while Moderna fell over 2% after a downgrade from Goldman Sachs, citing concerns over future vaccine revenue visibility.

The Fed Takes Center Stage at 19:00 GMT

At 19:00 GMT, the Federal Reserve will release its latest interest rate decision. Market pricing suggests a near 100% certainty that the central bank will keep rates unchanged at 4.25%-4.5%, but Powell’s commentary at 19:30 GMT will be crucial.

Traders will be focused on whether Powell signals the likelihood of rate cuts later this year. Market expectations point to a potential cut by June, but stronger-than-expected inflation or wage growth could delay that timeline.

Political pressure is also in play. President Trump has called for immediate rate cuts, but Fed officials are expected to emphasize their independence. Powell is likely to be asked about Trump’s comments, as well as how the central bank plans to respond to potential inflationary risks from the administration’s trade and labor policies.

Big Tech Earnings to Drop at 21:00 GMT

After the market closes, earnings from Meta Platforms, Microsoft, and Tesla will be released at 21:00 GMT. These reports will have a major impact on after-hours trading and set the tone for Thursday’s session.

A strong performance from these tech giants could reinforce the sector’s leadership and push the Nasdaq higher. On the other hand, any signs of slowing growth, weaker-than-expected guidance, or margin pressures could drag down valuations.

Tech has been the market’s primary driver, with AI enthusiasm fueling gains. However, recent volatility in Nvidia and concerns over rising competition from China’s DeepSeek have added uncertainty.

What to Watch for the Rest of the Week

Market direction will hinge on Powell’s post-Fed press conference and the reaction to Big Tech earnings. If Powell sounds dovish and earnings exceed expectations, stocks could rally. However, if Powell remains cautious on rate cuts or tech earnings disappoint, selling pressure could return.

Geopolitical risks, potential tariff changes, and labor market policies under the new administration are additional factors that could influence inflation and future Fed decisions. Traders should be prepared for heightened volatility as the market reacts to these key events.

More Information in our Economic Calendar.