Market Movements: Wall Street Awaits Federal Reserve Decision Amid Nvidia Woes

Wall Street futures exhibited caution on Wednesday ahead of the U.S. Federal Reserve's anticipated interest-rate cut, with Nvidia shares falling 1.7% following reports that Chinese firms would halt chip purchases. Investors watched closely for a possible 25 basis point rate cut intended to address weakening employment data.

The Federal Reserve's Chair Jerome Powell's speech and the "dot plot" projections are crucial for gauging future interest-rate trajectories. Traders expect a total rate reduction of approximately 68 basis points by year-end, though any unexpected hawkish tone may dampen current market optimism and exacerbate volatility.

Despite historical September challenges for U.S. equities, the S&P 500 and Nasdaq have experienced a six-session high, thanks in part to optimistic rate-cut predictions and AI stock trading trends. Notable movements included New Fortress Energy's pre-market surge and Workday's gain following Elliott Management's substantial stake acquisition.

(With inputs from agencies.)