Stock futures hovered near the flatline Tuesday night as the Federal Reserve’s interest rate decision looms.
Futures tied to the Dow Jones Industrial Average added 25 points, or less than 0.1%. S&P 500 futures and Nasdaq 100 futures inched up less than 0.1%.
Investors are coming off of a rough Tuesday, which saw the recent market sell-off come back in full force after two winning sessions.
In regular trading, the Dow Jones Industrial Average lost 0.6%, while the S&P 500 shed more than 1%. The broad market index ended the day off 8.6% from its February record close. The Nasdaq Composite declined 1.7% as shares of technology darlings Tesla, Palantir and Nvidia fell.
The major averages have been on a roller-coaster ride in recent weeks, as traders navigate soft economic data and uncertainty around President Donald Trump’s tariff policy. The S&P 500 officially entered correction territory last week, and the Nasdaq is still in a correction — meaning it’s down more than 10% from its recent high.
Investors are preparing for the Federal Reserve‘s interest rate decision due at 2 p.m. ET on Wednesday – another possible catalyst for markets.
Though the Fed is widely expected to maintain a steady hand on interest rates, traders are keeping a close eye on the central bank’s forecast for rate policy. Central bankers will be sharing their quarterly updates on rate expectations, as well as their outlook for gross domestic product, inflation and unemployment. Those insights arrive at a time when traders are shaky on what’s ahead for the U.S. economy and the impact on markets.
“Fed Chair Powell has repeatedly said that the risks to price stability and full employment are balanced,” said Scott Helfstein, Global X’s head of investment strategy. “That is likely still true, but risks to both are rising. This is not time to sell and go away, but perhaps time to review long-term strategy against near-term volatility.”
Morgan Stanley expects to cut roughly 2,000 workers, Bloomberg reports
Financial services giant Morgan Stanley expects to slash around 2,000 employees later this month, Bloomberg News reported Tuesday afternoon, citing people familiar.
The bank anticipates making the cuts across the firm, with an exception for its force of financial advisors, the sources told Bloomberg.
Shares were little changed in after-hours trading following the news report. Morgan Stanley is off about 6% in 2025.
—Darla Mercado
Gilead Sciences, HealthEquity shares decline after close
Gilead Sciences and HealthEquity were among the biggest losers in after-hours trading on Tuesday.
- Shares of Gilead Sciences declined about 2.9% on a report in The Wall Street Journal that the Health and Human Services Department is considering plans to significantly cut the federal government’s funding for domestic HIV prevention. That could affect Gilead’s business, as the drugmaker sells medicines for HIV and AIDS.
- HealthEquity’s stock price plunged 13% on the back of the company’s fourth-quarter earnings disappointment. HealthEquity, an administrator of health savings accounts, reported non-GAAP earnings per share of 69 cents on revenue of $311.8 million, while analysts polled by FactSet expected earnings of 72 cents per share on revenue of $305.8 million.
— Pia Singh
Meta Platforms finally falls into negative territory for 2025
Meta Platforms‘ 3.7% decline on Tuesday pulled the Facebook parent’s shares into negative territory year to date, making it the final member of the Magnificent Seven to fall into the red for 2025.
Meta is now down 0.5% this year.
It has been a rough few months for last year’s Big Tech high-flyers.
Investors’ anxiety around the U.S. economy and President Donald Trump’s approach to tariff policy has led to flight to safety in the markets, with investors fleeing from the tech sector and flocking toward defensive corners of the market, like health care and energy.
To that end, fellow Mag Seven stock Tesla is off 44% in 2025, while artificial intelligence play Nvidia is down 14% in the period.
—Adrian van Hauwermeiren, Darla Mercado
Stock futures open little changed on Tuesday night
Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were slightly below the flatline shortly after 6 p.m. ET. on Tuesday night.
— Pia Singh