Stock Futures Dip Amid Fed Meeting and Tariff Worries

Market Overview Ahead of Federal Reserve Meeting

Stock futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite traded lower on Tuesday as investors anticipated the Federal Reserve’s upcoming rate decision. Futures tied to the S&P 500 and Nasdaq Composite dropped 0.9% and 1.2%, respectively, while Dow futures declined 0.7%. This cautious sentiment follows the S&P 500 snapping its nine-session winning streak, marking its longest rally in decades.

Investors are closely watching the Fed’s two-day meeting starting today. The central bank is widely expected to maintain the current benchmark interest rate, which stands at 4.25%-4.5%. However, Fed Chair Jerome Powell’s commentary on economic conditions and the potential ripple effects of tariff policies will be critical. President Trump’s recent tariff announcements—targeting various sectors including pharmaceuticals and automotive—have rekindled fears of economic disruption, weighing on market sentiment.

Corporate Earnings Highlights

Palantir Technologies (PLTR) saw its shares fall 7% in premarket trading after releasing quarterly results that aligned with analyst expectations but failed to meet lofty investor hopes. The company reported $884 million in revenue for Q1, representing a 39% year-over-year increase, and adjusted earnings per share of $0.13. While Palantir raised its full-year revenue outlook to $3.89-$3.9 billion, the market reacted negatively to the lack of significant upside surprises.

Ford (F) shares dropped 2% after the automaker suspended its full-year guidance due to tariff-related uncertainty. Despite reporting better-than-expected earnings per share of $0.14, Ford highlighted a projected $1.5 billion hit to adjusted earnings due to tariffs, raising concerns about potential supply chain disruptions.

DoorDash (DASH) declined 3% premarket following the announcement of its $3.86 billion acquisition of Deliveroo. The deal, which expands DoorDash’s geographic reach, came alongside Q1 revenue of $3.03 billion, slightly missing analyst expectations of $3.10 billion. Investors remain cautious about the profitability impact of the acquisition in the near term.

Sector and Commodity Performance

Technology stocks led the market’s losses, with heavyweights like Nvidia, Tesla, and Alphabet declining over 1% each in premarket trading. Microsoft and Apple also saw slight losses, reflecting broader tech sector weakness. This pullback follows a strong rally earlier this year, as investors reassess valuations amid rising macroeconomic uncertainty.

Commodity markets showed mixed trends. Gold futures rose 2.3% to $3,400 per ounce, benefiting from increased demand for safe-haven assets. Crude oil prices also rebounded, with West Texas Intermediate (WTI) crude climbing 2.6% to $58.60 per barrel after hitting a four-year low on Monday. Meanwhile, Bitcoin edged lower to $94,000, down slightly from its overnight high of $95,200, as digital assets faced subdued investor interest.

These developments highlight a market grappling with uncertainty from both macroeconomic policy and corporate earnings. Investors are likely to remain cautious ahead of the Fed’s decision, while recalibrating strategies to navigate tariff risks and sector-specific volatility.