U.S. Stocks May Show A Lack Of Direction Ahead Of Fed Announcement

(RTTNews) - Following the modest pullback seen in the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.

Traders may be reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement this afternoon.

While the Fed is widely expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

Investors are also looking ahead to the release of earnings news from Magnificent Seven members Microsoft (MSFT) and Meta Platforms (META) after the close of today's trading.

The Labor Department's monthly jobs report also remains on traders' minds along with President Donald Trump's August 1st tariff deadline.

Trump announced in a post on Truth Social this morning that a 25 percent tariff will be imposed on imports on India beginning on Friday.

In U.S. economic news, payroll processor ADP released a report showing private sector employment in the U.S. increased by more than expected in the month of July.

The report said private sector employment jumped by 104,000 jobs in July after slipping by a revised 23,000 jobs in June.

Economists had expected private sector employment to climb by 78,000 jobs compared to the dip of 33,000 jobs originally reported for the previous month.

The Commerce Department also released a report showing the U.S. economy rebounded by more than expected in the second quarter of 2025.

The report said real gross domestic product surged by 3.0 percent in the second quarter after falling by 0.5 percent in the first quarter. Economists had expected GDP to jump by 2.5 percent.

The rebound by real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending, the Commerce Department said.

After failing to sustain an early move to the upside, stocks gave back ground over the course of the trading session on Tuesday. The major averages pulled back well off their early highs before ending the day in negative territory.

The Dow fell 204.57 points or 0.5 percent to 44,632.99, the Nasdaq declined 80.29 points or 0.4 percent to 21,098.29 and the S&P 500 dipped 18.91 points or 0.3 percent to 6,370.86.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Wednesday. Japan's Nikkei 225 Index edged down by 0.1 percent and Hong Kong's Hang Seng Index slumped by 1.4 percent, while China's Shanghai Composite Index crept up by 0.2 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.3 percent, the German DAX Index is up by 0.1 percent and the French CAC 40 Index is up by 0.4 percent.

In commodities trading, crude oil futures are rising $0.16 to $69.37 a barrel after surging $2.50 to $69.21 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,320.80, down $3.20 compared to the previous session's close of $3,324. On Tuesday, gold climbed $14.

On the currency front, the U.S. dollar is trading at 148.72 yen compared to the 148.46 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1486 compared to yesterday's $1.1547.