A professional trader was seen working on the floor of the New York Stock Exchange (NYSE) in New York City on September 15, 2025.
Late Tuesday, stock futures remained unchanged while traders geared up for a key monetary policy decision and outlook from the Federal Reserve scheduled for Wednesday.
S&P 500 Futures saw a 0.02% increase, while Nasdaq-100 Futures also advanced by 0.02%. On the other hand, futures linked to the Dow Jones Industrial Average gained 13 points, marking a 0.03% rise.
Most traders are banking on a rate reduction from the Federal Reserve during their Wednesday meeting. This potential cut is hoped to stimulate the economy, particularly given the signs of a slowing labor market, despite inflation being persistently above the central bank’s target of 2%. Policymakers might also share more about their rate expectations for the upcoming year using a closely watched “dot plot” that summarizes economic forecasts each quarter.
Additionally, investors will be keeping an eye on any dissent among Fed policymakers, aside from the two disagreements noted in July’s meeting. Current trading reflects a 96% probability that the Fed will implement a 25 basis point cut, with only a 4% chance for a larger half-point decrease on Wednesday. As per data from interest rate futures trading, CME Group reports.
Paul McCulley, a former managing director at Pimco, mentioned on CNBC’s “The Exchange” that a cautious quarter-point cut seems the most probable outcome from the Federal Open Market Committee meeting.
“Honestly, it’s hard to articulate. A 50 basis point reduction? I just don’t think that’s the message Chair Powell wants to convey right now, unless he’s indicating that there are serious concerns about the labor market,” McCulley said.
By the end of Tuesday, stock prices had largely stabilized.
S&P 500 returned later in the day, while Dow Jones Industrial Average dropped 125.55 points, finishing 0.27% lower at 45,757.90. Meanwhile, tech stocks in the Nasdaq Composite were unable to gain any further ground after reaching record highs on Monday.
