Global investors face a pivotal day on Wednesday, with a trio of major catalysts poised to shape sentiment — a Federal Reserve rate cut, a flood of mega-cap tech earnings, and President Donald Trump’s diplomatic visit to Asia, which could lead to a breakthrough meeting with China’s Xi Jinping.
At 03:38 ET, Dow futures slipped 0.1% (–31 points), while S&P 500 futures rose 0.2% (+17 points) and Nasdaq 100 futures climbed 0.4% (+113 points). The cautious tone follows a streak of record highs on Wall Street, as investors balanced optimism around artificial intelligence and expectations of easier monetary policy.
Wall Street extends rally, powered by Nvidia
Momentum carried over from Nvidia (NASDAQ:NVDA), which announced $500 billion in orders for its AI chips and a contract to build seven supercomputers for the U.S. Department of Energy. The stock jumped nearly 5%, bringing Nvidia within striking distance of becoming the first $5 trillion company, underscoring its dominance in the AI-driven market rally.
Big Tech results in the spotlight
The focus now turns to results from other tech heavyweights. Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG) are set to report earnings after today’s close, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) later this week.
Given their collective market capitalization, these firms will heavily influence equity direction into year-end. Analysts expect updates on AI investments and cloud infrastructure, with spending trends likely to determine how much further the current rally can run.
Fed expected to cut rates — tone more important than move
The Federal Reserve concludes its two-day policy meeting later today, and markets overwhelmingly expect a 25-basis-point rate cut, lowering the target range to 3.75%–4.00%.
While the cut itself is widely anticipated, investors are bracing for clues from Chair Jerome Powell’s press conference on whether more easing could follow in December.
The central bank is walking a fine line between curbing inflation and supporting growth amid a data blackout from the U.S. government shutdown, which has limited access to employment figures. Despite a modest uptick in consumer prices in September, many analysts believe softening labor data justified the Fed’s return to a more accommodative stance.
Trump’s Asia trip raises hopes of easing tensions
Adding a geopolitical dimension to the trading day, President Donald Trump has arrived in South Korea, where he met President Lee Jae Myung in the city of Gyeongju. Trump hinted at progress toward a bilateral trade understanding, though both sides tempered expectations.
All eyes are now on his planned meeting with Chinese President Xi Jinping in Busan on Thursday, which could mark a turning point in U.S.-China trade relations. Trump said he may consider rolling back tariffs imposed on Chinese goods in exchange for a commitment from Beijing to halt fentanyl precursor exports.
He also mentioned that Nvidia’s Blackwell AI chips may be on the agenda, a topic tied to U.S. export restrictions that have been a sticking point in negotiations between the two powers.
Gold bounces back above $4,000
Meanwhile, gold prices climbed back above the $4,000-per-ounce threshold after two sessions of declines, supported by expectations of a Fed rate cut.
Spot gold was up 1.5% to $4,010.15, while U.S. gold futures added 1.0% to $4,023.84. The metal had recently fallen to its lowest level in three weeks as easing geopolitical risk dampened demand for safe havens.
However, bets on lower borrowing costs revived sentiment, with traders awaiting Powell’s tone to gauge whether the Fed will sustain its dovish pivot into 2026. A stronger dollar or hawkish guidance could once again cap gains for bullion.