Dow Futures Drift Lower As Fed Meeting, Tariff Risks Keep Markets On Edge

The Federal Reserve’s two-day meeting begins Tuesday, with the central bank widely expected to hold interest rates steady.
The New York Stock Exchange (NYSE) stands off Wall Street on April 17, 2025 in New York City. (Photo by Spencer Platt/Getty Images)
The New York Stock Exchange (NYSE) stands off Wall Street on April 17, 2025 in New York City. (Photo by Spencer Platt/Getty Images)
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Prabhjote Gill·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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U.S. equity futures moved lower early Tuesday as markets braced for the Federal Reserve’s two-day policy meeting and continued uncertainty around President Donald Trump’s ‘Liberation Day’ trade tariffs.

Futures tied to the S&P 500 fell 0.67% pre-market, while the Dow Jones Industrial Average futures dropped 0.5%. Nasdaq-100 futures slid 0.9%. 

The SPDR S&P 500 ETF Trust (SPY) was down 0.5% in pre-market trade, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, declined 0.8%, and the SPDR Dow Jones Industrial Average ETF (DIA) lost 0.5%.

Treasury Secretary Scott Bessent on Monday told CNBC that the Trump administration is “very close to some deals,” echoing comments from the U.S. President on Sunday that agreements could come as early as this week.

However, no official trade deal updates have been announced by the White House yet. 

The Federal Reserve’s two-day meeting begins Tuesday, with the central bank widely expected to hold interest rates steady. The CME FedWatch Tool shows a 4.5% probability of a rate cut. 

Market participants will be focused on Chair Jerome Powell’s remarks Wednesday afternoon to gauge any shifts in the Fed’s economic outlook or policy stance in light of inflation, tariff uncertainty, and the probability of a recession. 

Gold prices (XAU/USD) rose 1.3% to $3,322, while Bitcoin (BTC) remained steady at around $94,200.

The market is also expecting earnings results from DoorDash (DASH) before the opening bell, followed by Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) after the closing bell. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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