Stock futures showed little movement this morning as investors awaited a pivotal decision from the Federal Reserve regarding interest rates. The market anticipates that the central bank will lower its key rate, prompting keen interest in the subsequent commentary from Fed officials concerning the broader economic outlook and monetary policy direction.
Futures tied to the Dow Jones Industrial Average and the S&P 500 remained near unchanged levels in recent trading, while Nasdaq futures dipped 0.1%. The prior day’s market performance was mixed, with the Dow and S&P 500 declining 0.4% and 0.1%, respectively, while the tech-heavy Nasdaq saw a slight increase of 0.1%. The yield on the 10-year Treasury note ticked up to 4.20%, reaching a three-month high, which could impact borrowing costs across various sectors. Additionally, Bitcoin was trading just below $92,000 after previously peaking at around $94,500, although it was up from weekend lows below $88,000. Gold prices also took a hit, falling 0.3% to $4,225 per ounce.
The Federal Reserve is expected to announce a reduction in its benchmark interest rate following a two-day policy committee meeting, scheduled for release at 2:00 PM ET. Along with this decision, a summary of economic projections from committee members will be shared, including the important “dot plot” that outlines future interest rate expectations. Fed Chair Jerome Powell will conduct a press conference thirty minutes after the announcement, where investors will seek insights into the Fed’s monetary policy trajectory. The central bank is striving to navigate between supporting the job market—a potential benefit of lower rates—and managing inflation, which could rise if rates are cut. Notably, President Donald Trump is preparing to nominate a new chair for the Fed, replacing Powell when his term concludes in May.
In corporate news, tech giant Oracle is set to release its quarterly earnings after the market closes today amid ongoing debates about an AI bubble in the sector. Analysts believe Oracle will showcase significant sales growth driven by demand from AI companies. Despite seeing its shares soar to record highs in the previous quarter post-earnings, the stock has lost recent gains due to concerns about the sustainability of valuations in the AI space and Oracle’s potential overreliance on major customers like OpenAI. The company is also under scrutiny for its debt levels as it seeks to expand its infrastructure to meet rising demands. In recent premarket trading, Oracle shares rose by 0.5%.
Meanwhile, Cracker Barrel faced significant declines in its stock following disappointing sales and outlook figures. The restaurant chain reported a loss of an adjusted $0.74 per share in its fiscal first quarter, narrowly missing analyst expectations, while revenue fell short of consensus estimates at $797.2 million. Comparable store sales for both dining and retail operations also dipped more than projected. As a result, Cracker Barrel has lowered its revenue guidance and profitability forecasts for fiscal 2026, signaling intentions to implement cost-cutting measures. The stock plunged by over 4% in premarket trading, marking a substantial 50% loss since the beginning of the year—the lowest price point for the stock since 2009.
On a more positive note, shares of GE Vernova soared after the energy equipment manufacturer provided an upbeat financial outlook during its annual investor day. The company indicated that it is on track to hit the higher end of its 2025 sales forecast of $36 billion to $37 billion and has also increased projections for free cash flow this year. Moreover, GE Vernova’s board announced a plan to double its dividend to $0.50 per share and expand its stock buyback initiative from $6 billion to $10 billion. As a result, shares jumped more than 10% in premarket trading, reflecting investor optimism.
