Stock Futures Slip as Wall Street Rally Stalls Amid Fed Uncertainty

U.S. stock index futures declined Sunday evening, signaling a weak start to the week as Wall Street’s recent rebound lost steam. Investors remain cautious ahead of a Federal Reserve meeting, where the central bank is expected to keep rates unchanged amid economic uncertainty and trade tensions under President Donald Trump.

S&P 500 Futures dropped 0.6% to 5,655.75, Nasdaq 100 Futures fell 0.8% to 19,765.25, and Dow Jones Futures declined 0.5% to 41,635. Markets had rebounded Friday from near six-month lows, led by bargain buying in technology stocks. However, Sunday’s futures dip suggests limited momentum for continued gains.

Investors are also weighing comments from Treasury Secretary Scott Bessent, who downplayed market losses, calling corrections “healthy.” His remarks, echoing White House optimism about Trump’s tax cuts and deregulation, did little to ease concerns over trade tariffs and recession risks.

The Fed’s stance on interest rates remains in focus, especially as inflation stays firm while retail sentiment and the labor market weaken. Before the Fed’s decision, key economic reports on retail sales and industrial production will provide more insight into the U.S. economy’s trajectory.

Despite Friday’s strong session—where the S&P 500 gained 2.1%, the Nasdaq rose 2.6%, and the Dow added 1.7%—Wall Street’s rally appears fragile. Uncertainty over tariffs and potential economic downturns continues to cloud investor sentiment, raising concerns about further declines.