U.S. equities advanced on Wednesday, extending Wall Street’s record-breaking rally, as investors prepared for the Federal Reserve’s closely watched policy decision that could offer signals on the timing and scale of future interest rate reductions.
As of 04:37 P.M. (GMT+7), S&P 500 futures saw an up tick to 6,899.00 points, an increase of 8.10 points or 0.12%, similar to Nasdaq 100 futures that saw an increase to 26,089.10 points, up by 76.90 points or 0.30%. Meanwhile, Dow Jones futures fell to 47,572.70 points, a decrease by 133.70 points or 0.28%.
Market participants largely remained cautious ahead of the Fed’s announcement. The central bank is widely anticipated to cut rates by a quarter point on Wednesday— the first reduction since September. Investors will be scrutinizing comments from Chair Jerome Powell to gauge prospects for further loosening of monetary policy.
Technology stocks continued to take center stage. Nvidia rose to USD 207.30 per share, an increase by USD 6.27 or 3.12%, in premarket trading after closing at a historic high, with investors encouraged by a spate of product debuts and new partnerships announced at the company’s GTC event. Nvidia is now poised to become the first firm to surpass a USD 5 trillion market capitalization.
Attention is shifting toward upcoming results from the so-called “Magnificent Seven” Big Tech firms. Alphabet, Meta Platforms, and Microsoft are scheduled to report after Wednesday’s close, while Apple and Amazon will post results on Thursday.
Analysts predict substantial ongoing investment in data centers, with the spotlight remaining on returns from artificial intelligence initiatives. Any unexpected misses could weigh heavily on the broader market.
In the background, an improvement in US – China trade sentiment has lent support to equities. Investors are also following President Trump’s visit to South Korea, where a meeting with Chinese President Xi Jinping is scheduled for Thursday.
