Wall Street futures hover near flatline as investors await Fed decision, commentary

Wall Street traded flat ahead of the FOMC decision due later today.

Wall Street futures traded mildly higher as investors awaited the U.S. Federal Reserve's decision regarding the key interest rate on Wednesday, July 30. Further, traders looked to the ongoing earnings seasons reports for further cues.

US stock futures showed mixed movement early Wednesday, with S&P 500 contracts inching up slightly and Nasdaq-100 futures gaining 0.1 percent. Dow Jones futures, however, were down by 9 points.

Starbucks shares surged 4 percent after the company reported revenue that topped forecasts for the third fiscal quarter. In contrast, Visa fell 2 percent despite delivering earnings that exceeded analyst expectations. Meta Platforms and Microsoft traded slightly higher before the opening bell, ahead of their scheduled earnings announcements later in the day.

Investors are waiting for the Federal Reserve’s interest rate announcement which will be announced later today. According to the CME Group's FedWatch tool, the expectations are the the U.S. Federal Reserve might keep the key rate unchanged in the range of 4.25 - 4.5 percent for the fifth straight session.

“Despite increased political scrutiny, Fed Chair Jerome Powell continues to signal patience around any interest rate decision. Financial markets do not anticipate any change in monetary policy from the Federal Reserve until at least September," said Jerry Tempelman, vice president of fixed income research at Mutual of America Capital Management.

The previous session ended in the red, snapping a streak of six consecutive record closes for the S&P 500. On Tuesday, the benchmark index dropped 0.3 percent, while the Dow and Nasdaq Composite declined by roughly 0.5 percent and 0.4 percent, respectively.

The main U.S. indexes came under pressure as uncertainty resurfaced around trade negotiations with China. Talks between American and Chinese officials wrapped up without clear progress, and it remains unclear whether the planned increase in tariffs on Chinese goods will be delayed. According to U.S. negotiators, any such extension still awaits President Donald Trump’s approval.

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