Wall Street futures mixed ahead of Fed’s Warsh debut

U.S. stock futures were mixed on Tuesday as investors paused after Monday’s record-setting rally and awaited Kevin Warsh’s first Federal Reserve policy decision. S&P 500 futures were little changed, Nasdaq 100 futures rose about 0.2% and Dow futures gained roughly 43 points, or 0.1%.

Traders reduced risk-taking ahead of the Fed’s Wednesday announcement, when policy is widely expected to hold the federal funds rate at 3.50% to 3.75%. Market attention is on Warsh’s comments and the Fed’s updated projections for inflation, unemployment and the path of interest rates.

Technology led gains in premarket trading. SpaceX rose about 10% premarket, extending its post-IPO rally. Memory-chip makers Micron Technology, Western Digital and Seagate each advanced between roughly 3% and 5%. Qualcomm climbed amid reports it is in talks to acquire AI-chip startup Tenstorrent for about $8 billion to $10 billion.

Crude oil fell after a U.S.-Iran peace framework was announced, easing some inflation concerns. Shipping confidence through the Strait of Hormuz may take several weeks to rebuild, keeping airlines, cruise operators and energy producers in focus.

Inflation remains above the Fed’s 2% target, and markets assign a meaningful probability to a rate increase in December. Investors will watch the Fed’s updated inflation and unemployment forecasts for signals on the timing of future rate moves.

Dave & Buster’s shares fell after the company reported quarterly earnings and revenue below expectations. Internationally, the Bank of Japan raised interest rates to a 31-year high.

Markets will closely parse Warsh’s language on inflation trends and labor-market strength when the Fed releases its statement and projections, as that guidance is likely to influence market direction for the remainder of the year.