Key Points
- U.S. stock futures were mostly flat as investors waited for major news. The biggest fear is that the U.S. could get involved in the Israel-Iran conflict.
- Investors are also waiting for the Federal Reserve’s interest rate announcement.
- While no rate change is expected, the real focus is on clues about future rate cuts this year.
- President Trump’s comment that his “patience is wearing thin” has increased speculation about U.S. involvement in the conflict.
U.S. stock futures were mostly flat on Wednesday as a double dose of uncertainty kept investors on the sidelines. The two major concerns are the growing risk that the U.S. could become entangled in the Middle East conflict and a significant interest rate decision from the Federal Reserve, expected later in the day.
At 9:39 AM ET, Futures for the Dow 30 and S&P 500 were both hovering around the flat line, with gains of 0.08% and 0.03%, respectively. Meanwhile, the tech-heavy Nasdaq 100 saw a slight decline of 1.00%.
The situation in the Middle East is causing markets to become extremely nervous. Investors are on high alert for any sign that the U.S. is joining the ongoing conflict between Israel and Iran. Speculation grew after President Trump met with his national security team and said, “Our patience is wearing thin.” Iran has warned it will strike U.S. bases in the region if America gets involved. The tension caused oil prices to tick higher after an earlier drop.
In addition to the geopolitical risk, all eyes are turning to the Federal Reserve. The central bank is widely expected to keep interest rates steady when it makes its announcement. The real focus for investors will be on the “dot plot,” a chart that will show if Fed officials still plan to cut rates twice this year. They will also be listening closely to Chair Jerome Powell’s press conference for his thoughts on how the economy is handling pressures from Trump’s trade tariffs.
Adding to the economic picture, the latest data showed that weekly jobless claims remain near an eight-month high.
