Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 25, 2025.
Jeenah Moon | Reuters
S&P 500 futures inched higher early Wednesday, after the benchmark snapped a win streak that brought it to record highs, as investors analyzed earnings reports and awaited the Federal Reserve’s interest rate decision.
Futures tied to the broad-based index were up 0.15%, while Nasdaq 100 futures advanced 0.23%. Dow Jones Industrial Average futures climbed 33 points.
Starbucks shares climbed 4% after the bell after the coffee chain posted stronger-than-expected revenue for the third fiscal quarter. On the other hand, Visa sank more than 2% despite quarterly results coming in better than what Wall Street expected.
Tuesday night’s action follows a losing day on the Street, marking the first session of the last seven in which the S&P 500 did not close at an all-time high. The S&P 500 slid 0.3%, while the Dow and Nasdaq Composite lost about 0.5% and 0.4%, respectively.
The major averages were weighed down Tuesday as the progress of U.S. trade talks with China became shaky. U.S. negotiators ended discussions with Beijing, and the potential extension of a pause on higher China tariffs remained uncertain. A postponement of these higher rates won’t be final until President Donald Trump signs off on the plan, U.S. negotiators said.
Investors are awaiting the Federal Reserve’s interest rate announcement Wednesday afternoon. Fed funds futures are pricing in a nearly 98% likelihood of the central bank keeping its key rate at a range of 4.25% to 4.5%, according to CME Group’s FedWatch tool.
“Despite increased political scrutiny, Fed Chair Jerome Powell continues to signal patience around any interest rate decision,” said Jerry Tempelman, vice president of fixed income research at Mutual of America Capital Management. “Financial markets do not anticipate any change in monetary policy from the Federal Reserve until at least September.”
Following the decision, traders will turn to a press conference with Powell for insights into the path of monetary policy. This comes as President Trump and allies have tried to pressure the central bank leader to bring the borrowing cost down.
Before that, traders will monitor economic data on private payrolls, gross domestic product and pending home sales due in the morning.
They’ll also follow the continued stream of earnings reports. Etsy will provide its quarterly results before the bell on Wednesday, followed by Meta Platforms, Microsoft, Ford and Robinhood after the market closes.