Traders work on the floor of the New York Stock Exchange on May 1, 2025.
NYSE
S&P 500 futures fell early Tuesday, as investors awaited the start of the Federal Reserve’s first policy meeting since President Donald Trump announced “reciprocal” tariffs in early April.
S&P 500 futures flickered under 0.2%. Futures tied to the Dow Jones Industrial Average were down just 26 points. Nasdaq-100 futures slipped 0.35%.
During Monday’s main 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%.
Tariff uncertainty continues to weigh upon the markets. 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.
Investors are now keeping a close eye on the Fed’s two-day policy meeting set to kick off on Tuesday, followed by an announcement on rates Wednesday afternoon. Although fed funds futures trading suggests just a 2.7% chance of the central bank cutting rates, traders will be listening for Fed Chair Jerome Powell’s comments on his economic outlook.
“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,” she added. “Countries around the world are too intertwined and dependent upon each other to not see some agreements made sooner than later.”
On the economic front, data on the U.S. trade deficit for March is due on Tuesday morning.
Investors will also await earnings reports from DoorDash in the morning, followed by Advanced Micro Devices and Super Micro Computer in the afternoon.
