Stock Market Today: Dow Jones, S&P 500, Nasdaq 10 Futures Gain as Fed Begins Its Two-Day Meet

U.S. stock futures pared losses to advance Tuesday, as the Dow Jones, S&P 500, and Nasdaq 100 indices rose, following Monday's higher close.

U.S. manufacturing showed renewed momentum in September as new orders for manufactured durable goods climbed 1.8% to $345.4 billion, easily outpacing August's sluggish 0.1% gain. The surge was heavily concentrated in the transportation sector, though core business investments also flashed signs of resilience with nondefense capital goods orders jumping 6.2% for the month.

The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, with its two-day meeting beginning today. This follows an interest rate hike of 25 basis points in September, bringing its benchmark range to 3.75%-4%.

CME Group’s FedWatch tool‘s projections show markets pricing in an 89.5% likelihood of the Federal Reserve leaving the current interest rates unchanged during October’s meeting. Polymarket bettors have placed a 94% probability that there will be no change in interest rates, while placing a 7% probability on a “25 bps increase.”

Meanwhile, the 10-year Treasury bond yielded 4.99%, and the 2-year Treasury bond yielded 4.72%, at the last check.

The SPDR S&P 500 ETF Trust (NYSE: SPY), the Invesco QQQ Trust ETF (NASDAQ: QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), which track the S&P 500 index, Nasdaq 100 index and Dow Jones Industrial Average, respectively, were higher in premarket trading on Tuesday. The SPY was up 0.32% at $767.83, the QQQ advanced 050% to $715.77, and the DIA rose 0.37% to $524.92.