U.S. equity futures pointed higher on Wednesday, suggesting Wall Street could extend its recent rally as investors await the Federal Reserve’s latest policy announcement and ride the momentum of technology stocks.
Nvidia (NASDAQ:NVDA) looks set to remain the market’s main driver, jumping 3.6% in pre-market trading and inching closer to an unprecedented $5 trillion market valuation. The chipmaker surged 5.0% on Tuesday after unveiling a series of major deals, including a $1 billion strategic partnership with Nokia (NYSE:NOK) aimed at deepening collaboration in networking and AI infrastructure.
Optimism ahead of the Fed’s policy statement this afternoon continues to underpin sentiment. The central bank is widely expected to cut rates by another 25 basis points, and investors will closely analyze both the statement and Chair Jerome Powell’s remarks for signals on whether further easing may follow later in the year.
According to CME Group’s FedWatch Tool, markets currently see an 87% probability of an additional quarter-point cut in December, although expectations for further rate reductions in early 2026 remain divided.
Stocks remained upbeat during Tuesday’s session, maintaining a positive tone and finishing near record levels despite late-day profit-taking. The Nasdaq advanced 190.04 points, or 0.8%, to close at 23,827.49, while the Dow Jones Industrial Average climbed 161.78 points, or 0.3%, to 47,706.37. The S&P 500 added 15.73 points, or 0.2%, to end at 6,890.89.
The rally reflected continued momentum from earlier in the week, fueled by renewed optimism surrounding a potential U.S.–China trade breakthrough. Confidence also received a lift from reports of a rare metals agreement between the U.S. and Japan, ahead of President Donald Trump’s upcoming meeting with Chinese President Xi Jinping.
Still, many investors chose to stay on the sidelines before the Fed’s decision, avoiding large new bets until the policy outlook becomes clearer.
Traders are also positioning for a packed week of tech earnings, with Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) all set to report in the coming days.
On the macroeconomic front, a report from the Conference Board showed a slight decline in U.S. consumer confidence for October, with the index slipping to 94.6 from a revised 95.6 in September. Economists had expected a smaller drop to 93.4.
Sector-wise, networking stocks led the advance, pushing the NYSE Arca Networking Index up 1.6% to a record close, while steel producers also gained, with the NYSE Arca Steel Index rising by the same percentage.
By contrast, airline shares tumbled sharply, dragging the NYSE Arca Airline Index down 4.1%. Weakness in commercial real estate, utilities, and energy stocks also tempered broader market gains.
Overall, Wall Street appears set to continue its upward march, powered by tech strength and policy optimism, even as traders brace for potentially market-moving comments from the Fed.