Traders in New York City are elevating optimism as stock futures rose Tuesday night amid ongoing discussions regarding U.S. trade negotiations and an upcoming interest rate announcement from the Federal Reserve.

The Dow Jones Industrial Average futures climbed 236 points, equivalent to a 0.6% increase, while the Standard & Poor’s 500 futures saw a rise of 0.7%. The Nasdaq 100 futures experienced an especially sharp gain of 0.8%. Investor sentiment shifted positively after reports indicated that U.S. Treasury Secretary Scott Bessent and top trade representative Jamieson Greer would meet with their Chinese counterparts this week in Switzerland, signaling potential progress in trade relations.

Eyes are particularly focused on the Fed’s interest rate decision, which is scheduled for 2 p.m. ET on Wednesday. Current projections suggest a 97% probability that the central bank will maintain its current borrowing rate, as indicated by tools tracking market expectations. Traders are eagerly awaiting insights from Fed Chair Jerome Powell during his post-decision press briefing, especially given recent criticisms from the White House regarding interest rate policy.

Complicating matters for the Federal Reserve, rising concerns regarding inflation due to proposed tariffs by President Trump have added to the uncertainty in the financial landscape. Investors are anxiously assessing how these geopolitical developments might affect both the economy and monetary policy. Thierry Wizman, a global foreign exchange strategist at Macquarie, advised traders to approach the idea that the Fed would ease policy too readily with caution.

In addition to the Fed’s decisions, traders are evaluating recent corporate earnings reports and anticipating more to come. Advanced Micro Devices saw its stock rise nearly 5% following a stronger-than-expected earnings report. In contrast, Rivian’s stock fell close to 2% after the electric vehicle manufacturer reduced its delivery targets for 2025.

Attention will also be directed toward consumer credit data anticipated Wednesday, along with earnings releases from major corporations such as Disney, Carvana, and Uber. These reports could further influence market movements and investor confidence.

The evening rally in futures followed a challenging day on Wall Street, where the Dow lost about 390 points, approximately 1% of its value. Similarly, the S&P 500 and Nasdaq Composite experienced declines of 0.8% and 0.9%, respectively. As traders absorb these developments, many are reflecting on the balance between navigating political uncertainties and assessing the health of the economy.