U.S. markets traded modestly lower before the bell Tuesday and ahead of the first of a two-day Federal Reserve meeting concerning where to go with interest rates, the Associated Press reports. Futures for the S&P 500 and Dow Jones Industrial Average both slipped 0.3% in premarket trading, while the technology-heavy Nasdaq fell 0.5%.
As the Fed prepares to meet Tuesday and Wednesday, the central bank and its chair, Jerome Powell, are faced with an economy that is looking somewhat different than it did at its last meeting just two months ago. Hiring was solid, the economy grew at a solid pace in last year’s final quarter, and inflation, while stubborn, had fallen sharply from its peak more than two years ago.
Now, on-and-off again tariff threats from President Donald Trump and sharp cuts to government spending and jobs have tanked consumer and business confidence, which could weigh on the economy and potentially on the still-healthy job market.
Fed officials will almost certainly keep their key rate unchanged this week. At the conclusion of the meeting Wednesday, they will release their latest quarterly economic projections, which will likely show they expect to cut benchmark interest rates in the U.S. twice this year.
In equities trading, Tesla faltered again, losing 1.7% before the bell. That follows a 4.8% sell-off the day before on news that China’s energy and auto giant BYD announced an ultra fast EV charging system that it says is nearly as quick as a gas fill up.
Benchmark U.S. crude adding 78 cents to $68.36 a barrel. Brent crude, the international standard, rose 77 cents to $71.84 a barrel.
Gold continues to climb higher as well. The price for spot market gold is hitting $3,000 an ounce for the first time ever. Considered a safer haven during global economic uncertainty, the precious metal traded around $3,038 early Tuesday.
