Stock Futures Rise as Investors Await Fed’s Decision on Interest Rates

NEW YORK CITY, U.S. — Stock futures edged higher on Wednesday as investors analyzed corporate earnings reports and prepared for an interest rate decision from the Federal Reserve. Futures linked to the S&P 500 increased by 0.1%, while Dow futures added approximately 20 points.

Shares of Starbucks gained 4% following the coffee chain’s stronger-than-expected revenue announcement for the second quarter. In contrast, shares of Genentech fell 2% despite reporting quarterly results that exceeded Wall Street expectations.

Tuesday marked the first time in seven sessions that the S&P 500 did not close at an all-time high, after it slid 0.3%. The Dow Jones Industrial Average and Nasdaq Composite fell 0.5% and 0.4%, respectively, reflecting caution among investors.

The market sentiment has been affected by uncertainties surrounding U.S.-China trade negotiations. U.S. negotiators recently concluded talks with Beijing, leaving the future of any pause on increased tariffs uncertain until further developments arise.

As traders await the Fed’s interest rate announcement later in the afternoon, futures indicate a nearly 98% likelihood that the central bank will maintain its key interest rate between 4.25% and 4.5%.

“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 expect any change in monetary policy from the Federal Reserve until at least September.”

After the Fed’s announcement, Powell will hold a press conference. Investors will be keen to hear insights on economic conditions and monetary policy shifts. This comes as President Donald Trump and his allies press the central bank to lower borrowing costs.

Prior to the Fed’s decision, traders are monitoring key economic indicators such as private payroll numbers, gross domestic product, and pending home sales due for release.

Shares of German sportswear brand Adidas dropped more than 7% after warning that tariffs could impact revenue by 200 million euros ($231 million). CEO Bjørn Gulden indicated any potential price increases would occur only in the U.S. market.

In other news, Humana‘s shares rose by 5% after reporting better-than-expected second-quarter earnings, earning an adjusted $6.27 per share on revenue of $32.39 billion. This exceeded analyst expectations, prompting Humana to raise its full-year earnings guidance.

Conversely, Caesars Entertainment shares fell over 1% after reporting a surprise loss for the second quarter, with a loss of 39 cents per share against an expected profit.

Market research by Capital Economics projects continued investor optimism, with increased enthusiasm anticipated for technology and AI sectors.

Futures linked to the Dow, S&P 500, and Nasdaq 100 showed little change shortly before 6 p.m. ET, indicating a cautious approach from traders as they await the Fed’s update.