US futures slip from records as Fed decision takes center stage

U.S. stock futures fell on Tuesday, setting the stage for a retreat from record highs as investors awaited the start of a Federal Reserve meeting that should indicate the path of interest rates.

Futures on the S&P 500 () and the tech-heavy Nasdaq 100 () both fell about 0.3% from all-time highs. Dow Jones Industrial Average futures () fell 0.4%.

Stocks have managed to make progress amid market uncertainty about an economy that may be too hot or too cold for comfort. A series of inconclusive data has fueled skepticism about the likelihood of three rate cuts in 2024, as the Fed envisioned in March. Many investors are now predicting just one cut before the end of the year.

The two-day Fed policy meeting that starts Tuesday is expected to end with borrowing costs remaining at their highest level in two decades. Investors will still be on the lookout for clues as to when a shift to austerity will occur, with September or November on the horizon.

Read more: What influence does the labor market have on inflation?

Investors calculating the chances of a rate cut are also looking ahead to May consumer price data due Wednesday, given its crucial role in the Fed’s deliberations.

Meanwhile, shares of Apple ( AAPL ) remained in the red after losses followed the iPhone maker’s big AI debut. On the other hand, shares of Eli Lilly (LLY) rose after the drugmaker’s early treatment for Alzheimer’s disease received unanimous support from a panel of FDA advisors.