Stock futures are little changed after S&P 500 posts first positive day in three following Fed decision: Live updates

A trader is shown working on the floor of the New York Stock Exchange (NYSE) in New York City while a news conference by U.S. Federal Reserve Chair Jerome Powell is broadcasted on a screen following the Fed rate announcement on May 7, 2025. Stock futures remained relatively steady on Wednesday evening after the Federal Reserve decided to keep rates unchanged, emphasizing concerns about increasing inflation and unemployment risks.

S&P 500 futures were down by 0.1%, Dow Jones Industrial Average futures dropped 55 points, and Nasdaq-100 futures were slightly lower. The Federal Reserve maintained its benchmark overnight borrowing rate at 4.25% to 4.5%, as expected, stating that uncertainties about the economic outlook have risen, with risks of higher unemployment and inflation. Despite concerns about a potential economic slowdown and inflation, Fed Chair Jerome Powell ruled out a preemptive rate cut in response to President Donald Trump’s tariffs, mentioning that inflation is still higher than desired.

Market reactions were mixed following the Fed’s decision, with the S&P 500 finishing 0.43% higher, supported by a surge in Nvidia’s stock. The Nasdaq Composite also gained 0.27%, and the Dow Jones Industrial Average rose 0.7%. Investors are now awaiting economic reports set to be released on Thursday, including weekly jobless claims data and earnings reports from companies like ConocoPhillips, Warner Bros. Discovery, and Paramount Global.

In extended trading, Applovin shares surged over 13% after exceeding Wall Street’s expectations in its latest quarterly results, while Arm Holdings saw a decline of more than 11% due to disappointing guidance. Meanwhile, Citi reports that U.S. equity positioning remains subdued despite positive developments in trade and earnings.

Stock futures opened lower after the regular trading session, with S&P 500, Nasdaq-100, and Dow Jones Industrial Average futures all trading down by 0.2% on Wednesday night.