U.S. Stock Index Futures Slip Ahead of Fed Decision

U.S. stock index futures edged lower on Tuesday evening following a negative session on Wall Street, with growing caution before the Federal Reserve's final interest rate decision of the year.

Markets have fully priced in a 25 basis point cut at the end of a Fed meeting on Wednesday, while attention will shift to long-term rate outlook signals. The Fed is expected to adopt a slower rate cut path after lowering rates in December.

S&P 500 Futures dipped 0.1% to 6,119.0 points, while Nasdaq 100 Futures fell 0.3% to 22,252.25 points by 18:40 ET (23:38 GMT).

Dow Jones Futures remained steady at 43,964.0 points, as the index recorded its longest losing streak since 1978 on Tuesday.

Fed Set to Cut Rates, Markets Assess Retail Sales Data

Market focus will be on the Fed’s economic projections for the next year and comments from Chair Jerome Powell. This could provide investors insights into the Fed’s long-term rate outlook amidst persistent inflation, which is expected to rise further under President Donald Trump.

Investors anticipate that the Fed will signal a slower pace of rate cuts in 2025 due to challenges from high inflation and a robust labor market.

Earlier data showed retail sales rose by 0.7% in November, exceeding the 0.5% forecast. This stronger-than-expected retail sales data suggests that the economy remains robust and consumer spending is healthy despite inflation and high interest rates. The resilience is driven by a solid labor market and stable household finances.

Tech Drags Wall St., Dow Falls for Ninth Straight Session

Wall Street indexes retreated on Tuesday as the tech sector surrendered recent gains, with investors remaining cautious ahead of the rate decision.

NVIDIA Corporation (NASDAQ:NVDA) dropped 1.2%, while Alphabet (NASDAQ:GOOG) fell 0.5%. The S&P 500 fell 0.4% to 6050.61 points, and the NASDAQ Composite lost 0.3% to 20,108.30 points. The Dow Jones Industrial Average closed 0.6% lower at 43,449.90 points.

Although the Nasdaq reached a record high on Monday and the S&P 500 has seen substantial gains this year, the Dow faced challenges, marking its ninth consecutive daily decline on Tuesday—the longest losing streak since February 1978.