Traders work at the New York Stock Exchange on June 17, 2025.
NYSE
U.S. stock futures inched lower on Tuesday night, as traders brace for the Federal Reserve’s rate policy decision due Wednesday afternoon.
Futures tied to the Dow Jones Industrial Average slipped 99 points, or 0.2%. S&P 500 futures shed 0.2%, while Nasdaq 100 futures lost 0.3%.
In the face of mounting conflict between Israel and Iran, during Tuesday’s regular session the Dow Jones Industrial Average shed 299.29 points, or 0.70%. The S&P 500 slipped 0.84%, while the Nasdaq Composite lost 0.91%.
Oil futures also ended the session up by more than 4%, keeping stocks under pressure. Global benchmark Brent crude climbed more than 5% in extended trading.
These losses came before the Federal Reserve’s rate decision, which is due Wednesday afternoon. The U.S. central bank is widely expected to hold rates steady, but investors will be keeping a close eye on Fed Chair Jerome Powell’s post-meeting comments. Traders are also watching for policymakers’ forecast on rate policy, as the Federal Open Market Committee will be sharing members’ “dot plot” of rate expectations.
Tensions in the Middle East continue to cast an overhang on investors. On Tuesday, President Donald Trump took to his Truth Social platform to threaten Iran’s leader, saying that “our patience is wearing thin” and calling for “UNCONDITIONAL SURRENDER!” Current and former administration officials also told NBC News that Trump is weighing options on Iran, including whether to launch a military strike.
With this in mind, Adam Crisafulli, founder of Vital Knowledge, said that equity markets are looking especially vulnerable these days.
“Even before the events in the Middle East, there was just so much risk on the horizon, and we have valuations that are very elevated so you don’t have a lot of flexibility,” he said Tuesday on CNBC’s “Closing Bell,” noting that tariffs, fiscal uncertainty and the debt ceiling are among the factors that are up in the air. “There’s not a lot of capacity priced in to absorb all this uncertainty.”
Data to be released Wednesday also includes May’s housing starts and preliminary building permits, which should give a glimpse behind the curtain on the state of the U.S. housing market. Weekly jobless claims are also due. The stock market will be closed Thursday for the Juneteenth holiday.