US stock futures traded flat as Wall Street digested mixed messages from the Federal Reserve in the wake of its decision to hold interest rates steady.
Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq Composite (NQ=F) dipped 0.1%.
42,000.00
–
+(0.09%)
As of 9:59:06 PM EDT. Market Open.
YM=F ES=F NQ=F
Markets initially rallied following the Fed’s decision on Wednesday, buoyed by the central bank staying the course for two more rate cuts this year. Federal Reserve Chair Jerome Powell also reassured investors that the economic impact of President Donald Trump’s trade war seemed manageable, adding that recession risks remain low.
Read more: The latest on Trump’s tariffs
However, by Thursday, the underbelly of the Fed’s decision started to weigh on Wall Street, sending stocks lower. The central bank had updated its projections to reflect higher inflation and lower economic growth, two concerns that have deeply rattled markets as more tariffs loom.
Some analysts also noted that the last time the Fed described inflation risks as “transitory,” as Powell did at a press conference on Wednesday, what came next was the most aggressive rate-hike campaign the US had seen in decades.
The next major deadline for Trump’s trade policy is less than two weeks away. Trump has given himself broad leeway to negotiate with countries in the meantime, adding to Wall Street’s sense that despite some reassurances this week, only more uncertainty lies ahead.
Coming soon
Stock market coverage for Friday, March 21, 2025.