Dow, S&P 500, Nasdaq Futures Mixed After Fed Holds Rates Steady: GOOG, GOOGL, IOVA, MSFT, NOW In Focus

U.S. stock futures were mixed overnight late Wednesday after the Federal Reserve held interest rates steady at a target range of 3.75%-4.00% in its October policy meeting.

As of 10:33 p.m. EDT, Dow futures gained 0.32%, while the S&P 500 futures were down 0.50% and Nasdaq-100 futures fell 1.60%.

On Wednesday, U.S. benchmark indexes closed higher. The Nasdaq Composite closed up 0.27%. The Dow Jones Industrial Average gained 0.19%, while the S&P 500 climbed 0.28%.

Markets were largely focused on the Federal Reserve’s policy decision on Wednesday. The central bank held rates steady, passing with a 10-2 vote, and largely in line with expectations.

“Inflation remains elevated,” the Fed said in the statement. “The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal. The Committee will deliver price stability.”

However, market participants were split on whether this was the right decision amid rising inflation and soaring energy prices.

DoubleLine Capital CEO Jeffrey Gundlach said the Fed should raise rates, pointing to the two-year Treasury yield and a steepening yield curve. Others, including University of Michigan economist Betsey Stevenson and BlackRock’s Rick Rieder, said waiting is justified.

Mohamed El-Erian, Chief Economic Advisor at Allianz, said in a post on X, “Quite a few of those now calling for rate hikes because inflation has exceeded target for over five years supported a series of rate cuts last year—when inflation had already been above target for four years. This isn't an argument against a policy response; inflation demands one. But there remains far too much focus on monetary policy and far too little on tools better suited to the task, including fiscal consolidation.”

Meanwhile, results from Alphabet Inc. (GOOG, GOOGL) were also in focus in the extended trading hours. The Google parent’s shares slid nearly 10% in the overnight session after third-quarter (Q3) adjusted earnings per share and revenue missed Street expectations. Negative free cash flow of $9.07 billion and a full-year capital expenditures forecast of $195 billion to $205 billion also weighed on sentiment.

Other artificial intelligence stocks slipped in sympathy, with Nvidia Corp. (NVDA) falling about 1% at the time of writing, while Micron Technology Inc. (MU) fell nearly 4%.

Markets will now turn their attention to the Personal Consumption Expenditures (PCE) price index report. The first reading of third-quarter GDP and weekly jobless claims are also due.

Meanwhile, on the geopolitical front, Iran and the U.S. offer conflicting accounts of negotiations for a peace deal. Iranian Foreign Minister Abbas Araghchi said Tehran remains in close contact with mediators on proposals to implement its seven-day plan to reopen the Strait of Hormuz. Meanwhile, U.S. President Donald Trump denied reports that he had asked Vice President JD Vance to initiate peace talks with Iran, saying the contact instead concerned Tehran’s need for medical supplies.