US Stocks Edge Lower Amid Tariff Uncertainty and Federal Reserve Meeting
U.S. stock futures are pointing lower as investors await developments from tariff talks and prepare for this week’s two-day Federal Reserve meeting. The S&P 500 and Dow Jones Industrial Average futures are down 0.8% and 0.7%, respectively, after the indexes fell for the first time in two weeks yesterday. Nasdaq futures are also down 1.1% following a 0.7% decline in the prior session.
Bitcoin (BTC/USD) is slightly lower at around $94,000, while oil and gold futures are moving higher. Yields on the 10-year Treasury note remain little changed as investors weigh the impact of ongoing trade tensions on the economy.
Federal Reserve Meeting Begins Amid Pressure for Rate Cuts
The Federal Reserve begins a two-day meeting today to decide whether to adjust interest rates that have been in place since January. According to the CME Group’s FedWatch tool, investors do not anticipate a change in interest rates from their current levels of 4.25% to 4.5%. This decision comes after last week’s jobs report showed a steady labor market and inflation in March remained unchanged.
President Donald Trump has pressured Federal Reserve Chair Jerome Powell to lead the central bank to further lower interest rates, while officials have said they are taking a "wait-and-see" approach as more data becomes available. The meeting marks a critical juncture for investors as they await clarity on the Fed’s stance on monetary policy.
Palantir Stock Drops Amid Disappointing Results
Palantir (PLTR) shares are sinking by more than 7% in premarket trading after the software firm posted quarterly results that were largely in line with analysts’ estimates. Despite this, investors may have been expecting more from the artificial intelligence (AI) software provider.
The company reported first-quarter revenue of $884 million, up 39% year-over-year and above Visible Alpha consensus. However, its adjusted profit of 13 cents was in line with expectations. Palantir raised its full-year revenue outlook to between $3.89 billion to $3.9 billion, significantly above consensus.
Ford Stock Falls Amid Tariff Uncertainty
Ford (F) shares are down more than 2% in premarket trading after the automaker reported better-than-expected results but suspended its full-year outlook due to uncertainty over tariff impacts. Ford expects to take a $1.5 billion hit to its adjusted earnings before interest and taxes this year related to tariffs, pointing to "potential for industrywide supply chain disruption."
The company reported adjusted earnings per share of 14 cents for the first quarter, down 71% year-over-year, on revenue that fell 5% to $40.7 billion.
DoorDash Stock Slips Amid Soft Revenue and Acquisitions
DoorDash (DASH) shares are declining 3% in premarket trading after the food-delivery service reported first-quarter revenue below expectations and announced a pair of acquisitions. DoorDash posted revenue of $3.03 billion, while analysts polled by Visible Alpha expected $3.10 billion.
The company also announced that it was acquiring U.K. delivery firm Deliveroo for about 2.9 billion pounds ($3.86 billion) in cash, expanding its geographic reach as well as restaurant booking platform SevenRooms.
Conclusion
As the Federal Reserve meeting begins today, investors are eagerly awaiting clarity on interest rate decisions. Meanwhile, stock futures are edging lower amid ongoing tariff uncertainty and disappointing results from Palantir and DoorDash. Ford’s decision to suspend its full-year outlook due to tariff impacts has also contributed to market volatility. As the day unfolds, it will be essential for investors to monitor developments from these key events and adjust their strategies accordingly.