Traders work on the floor of the New York Stock Exchange on May 1, 2025.
NYSE
Stock futures slipped Tuesday as investors awaited the Federal Reserve’s policy decision and watched for signs of progress in global trade deals.
S&P 500 futures fell 0.7%. Futures tied to the Dow Jones Industrial Average were down 235 points, or 0.6%. Nasdaq-100 futures declined 0.9%.
The Fed is widely expected to keep rates steady on Wednesday, with Fed Funds futures trading suggests just a 2.7% chance of the central bank cutting rates. Still, traders will be listening for Fed Chair Jerome Powell’s comments on his economic outlook.
Tariff uncertainty continues to weigh on the markets. Trump is scheduled for meetings with Canadian Prime Minister Mark Carney on Tuesday, marking the start of negotiations between the two leaders since since Carney assumed office earlier this year.
Treasury Secretary Scott Bessent told CNBC on Monday that “we’re very close to some deals,” echoing comments from Trump on Sunday that agreements could come as early as this week. A Bloomberg report citing people familiar said that India has proposed zero tariffs on certain goods.
Nonetheless, no official trade deals between the U.S. and its trading partners have yet been announced. While data issued on Monday from the Institute for Supply Management showed stronger-than-anticipated service sector activity in April, concerns around tariffs lingered.
“We could see temporary disruptions from a supply-chain perspective and a slowdown in growth if not a short and shallow recession. It may also temporarily impact inflation and keep the Federal Reserve in a difficult position on flexibility with interest rates,” said Megan Horneman, chief investment officer at Verdence Capital Advisors.
“However… we do not see this as a long-drawn-out disruption,” Horneman added. “Countries around the world are too intertwined and dependent upon each other to not see some agreements made sooner than later.”
During Monday’s session, the S&P 500 fell 0.6% to snap its nine-day rally — its longest winning streak since 2004. The tech-heavy Nasdaq Composite dropped 0.7%, while the Dow slipped 0.2%.
