Today’s Market ActionMarket Indexes Point Higher on Trade Talk Optimism
The stock market is showing signs of recovery on Wednesday, May 7, 2025, with futures pointing to a higher open as investors await the Federal Reserve’s interest rate decision and monitor developments in U.S.-China trade relations. As of early morning trading, Dow Jones Industrial Average futures are up 196 points (0.48%), S&P 500 futures have gained 0.49%, and Nasdaq 100 futures are rallying approximately 0.5%.
This positive momentum comes after two consecutive days of losses. On Tuesday, the Dow lost nearly 390 points (1%), while the S&P 500 and Nasdaq Composite slid about 0.8% and 0.9% respectively.
All Eyes on the Federal Reserve Decision
Today’s most anticipated market event is the Federal Reserve’s interest rate decision, scheduled for 2 p.m. ET, followed by Fed Chair Jerome Powell’s press conference at 2:30 p.m.
Investors will be closely monitoring Powell’s comments for insights into the Fed’s outlook on inflation, economic growth, and the potential impact of Trump’s tariff policies. The meeting comes amid heightened tensions between the White House and the Fed, with President Trump having recently criticized Powell, calling him a “total stiff” and a “major loser” while demanding lower rates.
Major Stock Movements and Corporate News
In the technology sector, several key stocks are making headlines. Advanced Micro Devices (AMD) jumped nearly 2% in pre-market trading following stronger-than-expected earnings, while electric vehicle maker Rivian (RIVN) ticked almost 2% lower after slashing its 2025 delivery target.
Other tech giants have shown mixed performance recently. Microsoft (MSFT) delivered exceptional revenue growth in its latest earnings report, with strong margins across its core software business and cloud services. The company’s AI investments continue to pay off across its product suite.
Tesla (TSLA), which had been one of the worst-performing components in the S&P 500 earlier this year, has seen a recent rally following news that CEO Elon Musk would focus more on the company. Investors appear willing to look past slowing growth in favor of opportunities in lower-cost models and self-driving robotaxis.
Nvidia (NVDA), a key player in the AI chip market, has been volatile recently but was down more than 1% in yesterday’s trading.
International Markets and Commodities
Asian markets mostly climbed overnight, with Hong Kong’s Hang Seng index jumping over 2% after China’s central bank announced sweeping plans to cut key interest rates. The People’s Bank of China reduced its seven-day reverse repurchase rate to 1.4% from 1.5% and announced a cut to the reserve requirement ratio, releasing about 1 trillion yuan ($139 billion) in liquidity.
In the commodities market, gold continues its upward trajectory, with futures recently up 2.5% at $3,405 an ounce.
Looking Ahead: Key Events to Watch
Beyond today’s Fed decision, investors should keep an eye on upcoming earnings reports from major companies including Disney, Carvana, and Uber.
With ongoing uncertainty surrounding trade policies and their potential impact on inflation and economic growth, market volatility may continue as investors digest new information and adjust their expectations accordingly.