Wall Street Futures Remain Stable Ahead of Fed Decision, Inflation Risks in Focus

Investing.com - U.S. stock index futures were nearly unchanged Tuesday evening, after Wall Street saw slight gains during regular trading hours as investors awaited the Federal Reserve’s interest rate decision and monitored the escalating Middle East conflict.

As of 8:32 p.m. Eastern Time (12:32 a.m. Beijing Time), S&P 500 futures were flat at 6,774.25, Nasdaq 100 futures rose slightly by 0.1% to 25,046.75, and Dow Jones futures were unchanged at 47,333.0.

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Federal Reserve Decision Looms, Inflation Risks in Focus

During the cash session, despite rising oil prices, major U.S. stock indexes edged higher. The S&P 500 increased by 0.3%, the Dow Jones Industrial Average gained 0.1%, and the NASDAQ Composite rose by 0.5%.

Ahead of the Fed’s policy announcement scheduled for Wednesday, traders remain cautious, with markets widely expecting the central bank to keep rates unchanged amid ongoing inflation uncertainties.

The focus is entirely on the Fed’s policy statement and Chairman Powell’s press conference, as markets seek clues about the future direction of interest rates.

Although recent data shows some easing of inflation, geopolitical tensions have caused oil prices to surge significantly, complicating the outlook and raising concerns about a resurgence in price pressures.

No Signs of Easing in Iran Conflict

Oil prices remain strong near multi-year highs, with Brent crude trading above $100 per barrel, driven by supply disruptions related to Middle East conflicts.

Iran confirmed on Tuesday that its security chief, Lari Jani, was killed in an Israeli airstrike, marking a major escalation in the conflict.

Reuters reported that Iran rejected calls for de-escalation and vowed to continue resisting.

The ongoing war has severely disrupted global oil flows, especially through the Strait of Hormuz, a critical energy supply route.

Despite these adverse factors, the U.S. stock market has shown resilience this week, supported by selective buying in tech stocks and market expectations that monetary policy will remain stable in the near term.

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