United States stock futures traded slightly lower on Tuesday night (Wednesday AEDT) as investors awaited the Federal Reserve’s upcoming interest rate decision.
By 9:35 am AEDT (10:35 pm GMT) Dow Jones Industrial Average futures, S&P 500 futures and Nasdaq 100 futures were down by 0.1% apiece.
In extended trading, HealthEquity tanked 12.5% after reporting earnings per share of $0.69, falling short of the expected $0.72 per share.
Meanwhile, Gilead Sciences declined 2.7% following a Wall Street Journal report that the U.S. Department of Health and Human Services is considering significant funding cuts for domestic HIV prevention programs.
Tuesday’s session saw a return of selling pressure, halting a brief market rebound. The Dow Jones Industrial Average fell 260.3 points, or 0.6%, closing at 41,581.3, the S&P 500 dropped 1.1% to finish at 5,614.7, while the Nasdaq Composite declined 1.7%, settling at 17,504.1.
The broader market has been on a volatile path in recent weeks, as traders assess soft economic data and ongoing uncertainty surrounding President Donald Trump’s tariff policies. The S&P 500 officially entered correction territory last week, while the Nasdaq remains in correction.
Investors now turn their focus to the conclusion of the Federal Reserve’s two-day policy meeting, with an interest rate decision set for release on Wednesday at 2 p.m. ET. Fed Chair Jerome Powell will follow with a press conference at 2:30 p.m.
According to CME’s FedWatch Tool, futures markets are pricing in a 100% probability that the Fed will keep interest rates unchanged.
ANZ analysts noted in a client report: "The most interesting aspect of the March FOMC post-meeting statement and press conference will be the committee’s assessment of future inflation, the labour market, and growth amid changing economic policies.
"Diverging trends in confidence and inflation expectations potentially signal a very challenging environment for the Fed, and Chairman Powell’s assessment of growth risks and longer-run inflation expectations will be very important.
"We expect the Fed will retain its cautious easing bias. In this regard, Chairman Powell is likely to re-emphasise that policy is in a good place, that the Fed is not in a hurry to cut rates but is well positioned to respond to economic developments as appropriate."
