United States stock futures were largely unchanged on Tuesday evening (Wednesday AEDT) as investors positioned themselves ahead of the Federal Reserve’s highly anticipated interest rate decision.
By 10:45 am AEDT (11:45 pm GMT), Dow futures, S&P 500 futures were flat, while Nasdaq 100 futures ticked down 0.1%.
In extended trading, shares in AeroVironment fell 4.1% after the defence technology group reported second-quarter adjusted earnings per share (EPS) of $0.44, below expectations of $0.78. Revenue, however, came in slightly ahead of forecasts at US$473 million versus the expected US$468 million.
GameStop also declined sharply, dropping 5.9% after the retailer reported weaker-than-expected third-quarter revenue growth. The company reported EPS of $0.24 on sales of US$821 million - down roughly 4.5% from a year earlier.
Cracker Barrel shares tumbled around 8.3% in extended dealings after first-quarter revenue missed market projections. The restaurant chain posted $797.2 million in revenue compared with expectations of $800.3 million, though its adjusted loss was narrower than anticipated.
GE Vernova surged 6% after raising its 2026 revenue forecast to between US$41 billion and US$42 billion. This compares with this year’s expected range of US$36 billion to US$37 billion.
The company also doubled its quarterly dividend to 50 cents per share and authorised a US$10 billion share buyback, benefiting from strong power demand throughout the year.
Markets have been wavering between modest gains and losses in recent sessions as traders look toward the Fed’s upcoming announcement.
Policymakers are widely expected to deliver a third consecutive quarter-point interest rate cut, with fed funds futures pricing in an 87.4% probability of a reduction, according to the CME Group FedWatch Tool.
However, sentiment within the Federal Open Market Committee appears divided. Some officials favour further easing to stabilise the weakening labour market, while others worry that additional rate cuts could reignite inflationary pressures.
Investors will look for clearer direction in the committee’s statement and from Chair Jerome Powell’s press conference on Wednesday afternoon.
Tuesday’s U.S. session was subdued, with the S&P 500 closing down 0.1% and the Dow shedding nearly 0.4%, weighed by losses in JPMorgan. The Nasdaq Composite inched up 0.1%, supported by gains in Broadcom, Tesla and Alphabet.
One clear theme has been the rotation into small-cap stocks. The Russell 2000 index touched a fresh intraday record on Tuesday, buoyed by expectations of lower interest rates.
Smaller companies typically benefit more quickly from easing financial conditions, as their borrowing costs are closely tied to market rates, a dynamic that could bolster margins should the Fed continue cutting into early 2026.
