U.S. Stock Futures Steady as Markets Await Fed Rate Decision Amid Middle East Tensions

U.S. stock index futures held relatively steady on Tuesday evening following a modest gain in the regular Wall Street session. Investors remained cautious as they awaited the Federal Reserve's interest rate decision and kept a close eye on escalating tensions in the Middle East.

S&P 500 Futures traded flat at 6,774.25, while Nasdaq 100 Futures edged slightly higher by 0.1% to 25,046.75 points. Dow Jones Futures were largely unchanged at 47,333.0 points during after-hours trading.

During the regular session, U.S. equities posted modest gains. The S&P 500 rose 0.3%, the Dow Jones Industrial Average added 0.1%, and the Nasdaq Composite climbed 0.5%, even as oil prices remained elevated due to ongoing geopolitical instability.

Markets are widely anticipating the Fed to hold interest rates steady at its upcoming policy meeting, though uncertainty remains over the longer-term rate trajectory. Investors are closely watching Federal Reserve Chair Jerome Powell's press conference for any signals about future monetary policy. While recent inflation data has shown some signs of cooling, surging oil prices driven by Middle East conflict have raised fresh concerns about renewed inflationary pressure complicating the Fed's path forward.

Brent crude continued trading above $100 per barrel amid significant supply disruptions, particularly affecting flows through the Strait of Hormuz. Tensions escalated further after Iran confirmed the death of its security chief Ali Larijani in an Israeli airstrike. Iran has since rejected calls for de-escalation, signaling the conflict shows no signs of subsiding.

Despite these global headwinds, U.S. equities have demonstrated resilience, supported by targeted buying in technology stocks. Investors appear to be balancing geopolitical risk against expectations that the Federal Reserve will maintain a steady policy stance in the near term, keeping broader market sentiment cautiously optimistic.