US Stocks Likely To Open Higher Ahead Of FOMC Decision: 'Tariffs Remain The Dominant Market Force' Amid Rising Economic Uncertainty, Says Expert

US Stocks Likely To Open Higher Ahead Of FOMC Decision: 'Tariffs Remain The Dominant Market Force' Amid Rising Economic Uncertainty, Says Expert

Benzinga
March 19, 2025

U.S. stock futures advanced on Wednesday ahead of the Federal Open Market Committee’s (FOMC) decision on the interest rates. Futures of all four benchmark indices were higher in premarket trading.

On Tuesday, the stocks plunged after a two-day rally as the Magnificent 7 stocks dragged the indices down. Nvidia Corp.’s (NASDAQ:NVDA) GTC AI Conference failed to ignite a rally despite a slew of announcements.

The two-day FOMC meeting began on Tuesday, and the Federal Reserve Chairman Jerome Powell is expected to announce its decision during a press conference on Wednesday afternoon.

The 10-year Treasury yield stood at 4.29%, while the two-year yield was at 4.05%. According to the CME Group's FedWatch tool, there is a 99% chance that the Federal Reserve will keep interest rates unchanged.

Futures

Change (+/-)

Nasdaq 100

0.16%

S&P 500

0.26%

Dow Jones

0.02%

Russell 2000

0.28%

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.26% to $562.46, and the QQQ advanced 0.35% to $476.22, according to Benzinga Pro data.

Cues From The Last Session

Technology, communication services, and consumer discretionary sectors led U.S. stock declines on Tuesday, with the Nasdaq Composite falling roughly 300 points.

Specifically, Palantir Technologies Inc. (NASDAQ:PLTR) dropped about 4%, and Nvidia Corp. fell over 3%.

The Technology Select Sector SPDR Fund (NYSE:XLK) also saw a decline exceeding 1%. In contrast, energy and healthcare stocks rose, defying the broader market’s downward trend.

Economic data showed that U.S. import prices increased by 0.4% in February, exceeding expectations, while export prices rose 0.1%. The U.S. industrial production also surpassed estimates, increasing by 0.7% in February.

The Nasdaq 100 index continues to be in the correction zone ...

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