View Live Stock Market TodayMarket Overview: S&P 500, Dow, and Nasdaq Futures Down as Investors Eye Fed Decision
U.S. stock futures are trading lower on Tuesday, May 6, 2025, as investors await the Federal Reserve’s policy meeting amid ongoing concerns about President Trump’s tariff policies. Futures tied to the S&P 500 (ES=F) are down 0.4%, while Dow Jones Industrial Average (YM=F) futures have slipped 0.2%. The tech-heavy Nasdaq Composite (NQ=F) is showing the largest decline, down 0.6% in early morning trading.
This downward movement follows Monday’s market retreat, which snapped the S&P 500’s impressive nine-day winning streak—its longest since 2004. The shift in sentiment was largely driven by President Trump’s recent comments on tariffs, including plans to impose a 100% tariff on movies produced outside the U.S. and indications that he has no plans to discuss trade with Chinese President Xi Jinping this week.
Federal Reserve Meeting Takes Center Stage
The Federal Reserve’s two-day policy meeting, which begins today, is commanding market attention. While the central bank is widely expected to keep interest rates unchanged in the 4.25%-4.50% range, investors will be closely monitoring Fed Chair Jerome Powell’s press conference on Wednesday for clues about future monetary policy.
Market participants are particularly interested in how the Fed views the potential economic impact of Trump’s tariffs, which could increase both inflation and unemployment. According to the CME Group’s FedWatch tool, there’s only a 1.8% chance of a rate cut at this meeting, but the probability rises to around 30% for the June meeting.
Major Earnings Reports on Deck
Several high-profile companies are scheduled to report quarterly results today, which could significantly impact market sentiment:
– Advanced Micro Devices (AMD) will release earnings after market close, with investors focused on its data center and AI accelerator businesses, as well as updates on its MI300 chips. The report will provide crucial insights into AMD’s position in the AI chip race against Nvidia.
– Super Micro Computer (SMCI) will report after the bell, with the market already digesting its preliminary results that fell short of previous guidance. The company expects net sales of $4.5-$4.6 billion, below its prior forecast of $5.0-$6.0 billion. SMCI attributed the shortfall to “delayed customer platform decisions” that shifted sales into the fourth quarter.
– Rivian (RIVN) earnings will focus on vehicle production and delivery volumes, as well as cost control and margin improvement efforts. The EV startup faces rising competition and headwinds in consumer discretionary spending.
– Other notable companies reporting today include BP (BP), Ferrari (RACE), Celsius Holdings (CELH), Datadog (DDOG), and Marriott International (MAR).
Tariff Concerns Continue to Weigh on Markets
Uncertainty surrounding Trump’s tariff policies remains a significant market overhang. Ford Motor Company (F) pulled its 2025 guidance after Monday’s close, citing trade uncertainties, and said it foresees a $1.5 billion hit from the president’s auto duties.
Meanwhile, Palantir Technologies (PLTR) saw its stock drop 9.2% in after-hours trading following earnings that failed to meet Wall Street’s high expectations.
Economic Data and Looking Ahead
Recent economic data has shown mixed signals. The ISM Services PMI for April rose to 51.6, surpassing expectations and indicating moderate expansion in the services sector. However, GDP unexpectedly shrank last quarter, though consumer spending still grew at a decent 1.8% pace.
As the week progresses, market participants will continue to monitor developments from the Fed meeting, earnings reports, and any news regarding trade negotiations. Treasury Secretary Scott Bessent recently told CNBC that “we’re very close to some deals,” echoing Trump’s comments that agreements could come as early as this week.
For investors wondering why the market is down today, the combination of Fed meeting uncertainty, disappointing earnings pre-announcements, and ongoing tariff concerns appears to be creating a cautious trading environment as we move further into May.