US stock futures advanced on Wednesday as investors awaited updates on US-China trade negotiations and the Federal Reserve’s interest rate decision later in the day. The Dow Jones Industrial Average futures climbed 0.6%, while S&P 500 and Nasdaq Composite futures each rose 0.6%. The rise in futures came on news that US Treasury Secretary Scott Bessent and top trade official Jamieson Greer will meet with their Chinese counterparts this week in Switzerland.
Investors viewed this as a positive development following President Donald Trump’s tariff announcement last month. “My sense is that this will be about de-escalation, not about the big trade deal,” Bessent told Fox News. “But we’ve got to de-escalate before we can move forward.”
Investors are also focused on the Fed’s interest rate decision expected at 2 p.m. ET.
Fed funds futures are pricing in a high probability that the central bank will hold rates steady, according to CME’s FedWatch tool. Traders will closely monitor Fed Chair Jerome Powell’s post-decision press conference for insights on future rate moves. This comes at a precarious moment for Powell following criticism from Trump regarding his handling of interest rates.
Market participants are also concerned that Trump’s tariffs could push inflation higher, complicating the Fed’s plans. “If traders wish to believe that the Fed will come to the rescue of the world tomorrow with a signal of overt ‘dovishness,’ they should think again,” said Thierry Wizman, global foreign exchange and rates strategist at Macquarie. Tuesday night’s moves followed a rough session on Wall Street.
The Dow lost nearly 390 points, or 1.1%, while the S&P 500 and Nasdaq dropped 0.8% and 0.9%, respectively.
Fed rates decision awaited closely
In corporate news, Novo Nordisk’s stock jumped more than 5% after the company projected improved sales of its Wegovy weight loss medication in the second half of 2025.
“We now expect that compounding will be knocked off, so to say, and we get that business growth going forward,” the company stated. TCW CEO Katie Koch expects increased market volatility as investors continue to digest economic data. “There will be a lot of uncertainty,” she said in an interview.
“This is a process and it’s going to take time. We are going to continue to get a series of conflicting data points.”
Koch noted the varying potential outcomes for the economy, which range from a soft landing to a recession to stagflation. “In the meantime, selectivity is key,” she said, highlighting opportunities in equities and private credit, particularly in rescue financing.
Koch also expressed long-term confidence in the artificial intelligence revolution and energy sector. In Asia, major stock indexes advanced amid positive economic measures. Japan’s Nikkei 225 rose 0.1%, South Korea’s Kospi gained 0.4%, and Australia’s S&P/ASX 200 advanced 0.5%.
The Chinese government also announced measures to mitigate economic challenges, including cutting interest rates and reducing lending requirements, which bolstered markets across the region. The CSI 300 climbed 0.5%, while Hong Kong’s Hang Seng Index jumped 0.5%. Oil prices continued their two-day streak of gains as optimism over resolving economic issues boosted commodity prices upwards.
However, WeightWatchers announced that its US division is filing for Chapter 11 bankruptcy as the parent company deals with $1.15 billion in debt.
