As global stock markets navigate a landscape of mixed signals, U.S. stock futures traded flat as investors braced for the U.S. Federal Reserve‘s upcoming interest rate decision and earnings reports from tech giants Microsoft and Meta.
U.S. stock futures traded flat as futures linked to the Dow Jones Industrial Average and the benchmark S&P 500 nudged up 0.1 percent. Futures associated with the tech-heavy Nasdaq 100 rose 0.2 percent.
Stocks declined on Wednesday, causing the S&P 500 to end its six-day record streak. U.S.-China trade discussions wrapped up without an extension of the current tariff pause, but Treasury Secretary Scott Bessent indicated that President Trump would make a “final call” on the issue soon. Meanwhile, job openings decreased, raising the stakes for the July jobs report, which is due on Friday.
The Fed commenced its two-day policy meeting on Tuesday and will announce its decision on interest rates Wednesday at 2 p.m. ET. With the central bank anticipated to maintain steady rates, Wall Street will closely monitor the Fed’s “dot plot” and comments from Fed Chair Jerome Powell for indications of possible rate cuts later this year.
Additionally, on Wednesday, after the bell, major tech players Microsoft and Meta are scheduled to report their earnings. Both companies are facing increasing scrutiny regarding whether their substantial AI investments are yielding results. Looking ahead to Thursday, Apple and Amazon will release their results. Wall Street will also gain further insight into the potential direction of interest rates with the publication of the Fed’s preferred inflation metric, the Personal Consumption Expenditures (PCE) index.
Despite mixed signals from global markets, investor attention remained focused on trade negotiations and earnings reports.
Asia
Asian stock markets mostly edged higher on Wednesday, with investors maintaining caution after the U.S.-China talks in Sweden ended without a fresh trade pact. The Nikkei 225 in Japan slipped by 0.1 percent to around 40,632.60. Hong Kong’s Hang Seng index fell by 0.15 percent to 25,524.45. South Korea’s Kospi rose by 0.66 percent to 3,230.57, and China’s Shanghai Composite inched up 0.33 percent to 3,609.71. India’s Sensex showed a gain of 0.55 percent, trading at 81,337.95. The generally positive tone was tempered by ongoing trade uncertainty. Talks between the U.S. and China concluded without a long-term agreement, but discussions included extending a key tariff deadline. This kept investor sentiment cautious as traders awaited the outcomes of major policy decisions and the Fed meeting.
Europe
European stock markets opened higher as investors digested the latest earnings from major companies and monitored trade developments. The Eurozone’s major indexes registered minor gains: the DAX in Germany was up 1.03 percent at 24,217.37, France’s CAC 40 rose 0.72 percent, and the FTSE 100 in the U.K. gained 0.6 percent. The pan-European STOXX 600 rose 0.2 percent on Tuesday. Corporate earnings were a driving factor, with strong performances from several financial institutions and a rebound in health and tech sectors helping major indexes offset trade-related headwinds.
Investor focus
Across all major regions, the same themes dominated: anticipation surrounding the Fed’s policy statement and the timing of possible rate cuts; ongoing geopolitical and trade uncertainties—particularly between the U.S. and China; and corporate earnings season, especially from the world’s largest tech names, which heavily influence global benchmarks. Asian, European, and U.S. markets all displayed tentativeness as traders and investors watched these macro events unfold, positioning portfolios cautiously until greater clarity emerges on interest rates, inflation, and trade policy.
