U.S. stock futures remained mostly unchanged in overnight trading on Tuesday as Wall Street awaited the Federal Reserve's highly anticipated rate cut.
By 6:45 pm ET (10:45 pm GMT) Dow futures, S&P 500 futures and Nasdaq-100 futures each gained 0.1% apiece.
Earlier in the day, the market saw a mixed session with the S&P 500 closing higher by 0.03%, hitting a new intraday all-time high. Meanwhile, the Dow Jones Industrial Average eased 0.04%, and the Nasdaq Composite gained 0.2%.
Investors are bracing for the Fed’s rate cut at the conclusion of its two-day policy meeting on Wednesday. This decision marks one of the most critical Fed meetings in recent years as the central bank prepares to pivot from its series of rate hikes, which began in March 2022, to a more accommodative policy stance.
Lower rates are expected to boost corporate earnings and could offer relief after a stretch of high borrowing costs and persistent inflation.
While a rate cut is expected, the size of the cut is still under debate. According to CME Group’s FedWatch tool, there is a 63% chance of a 50 basis point cut, with a 37% chance of a smaller 25 basis point reduction.