Stocks Edge Higher With The FOMC Decision Looming – Europe Market Wrap

US equity futures edged higher and the dollar strengthened as investors looked ahead to the Federal Reserve’s policy decision for greater clarity on the outlook for the economy and interest rates.

Futures on the Nasdaq 100 and S&P 500 gained about 0.3%, signaling a bounce from Tuesday’s losses. Technology stocks were led higher by Tesla Inc. which rose as much as 3.7% after the electric-vehicle maker received California’s approval to start carrying passengers. NVIDIA also advanced after CEO Huang promised a clearer payoff to customers. The shares had dropped 3.4% Tuesday.

Market gains are being held in check, however, by signs that President Donald Trump’s trade tariff policies are starting to weigh on economic growth and consumer sentiment. Authorities have also signaled they are not prepared to step in to support equity markets.

While the Fed is expected to hold interest rates steady, its quarterly dot plot should offer clues on the central bank’s thinking on the economy. Fed Chair Jerome Powell’s news conference will also be scrutinized for his views on the potential impact of the trade tariffs and how much support could be offered to the economy this year.

Meanwhile, geopolitics are adding a fresh layer of worry, as the Gaza truce ended, Russia rejected Trump’s ceasefire proposal in Ukraine and Turkey ignited a selloff in its markets by detaining a key opposition figure.