S&P 500 and Nasdaq slip ahead of Fed decision, Nvidia slides

The S&P 500 and Nasdaq Composite pulled back slightly Wednesday as investors turned toward the first Federal Reserve interest rate decision of 2025, while Nvidia slipped following a strong session.

The broad market index and the tech-heavy Nasdaq dipped 0.4% and 0.7%, respectively, as Nvidia shares dropped 5% — adding to an already volatile week for the tech giant. The Dow Jones Industrial Average rose 20 points, or less than 0.1%.

The Fed is scheduled to deliver its latest monetary policy decision at 2 p.m. ET. A news conference with Chair Jerome Powell is also slated for 2:30 p.m. ET.

Fed funds futures data reflect a nearly 100% certainty that the central bank will keep rates steady at a target range of 4.25% to 4.5%, according to CME Group data.

Investors will be paying especially close attention to Powell’s comments — his first press conference in President Donald Trump’s second term. The two have had a contentious relationship dating back to Trump’s first term. The president has already said he would “demand that interest rates drop immediately.”

“I don’t think anybody in the market really expects much of anything meaningful from the Fed today. ... I’d be very surprised to see any of the commentary really move the needle on current expectations,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments. “The Fed is definitely playing backseat to the big swath of Mag Seven earnings that we’re getting today and tomorrow.”

A volley of Big Tech earnings are also due Wednesday afternoon, with Meta Platforms, Microsoft and Tesla issuing their quarterly reports.