Stock Futures Rally as Traders Await Fed Decision; S&P 500 Seeks Recovery

What’s happening

U.S. stock futures are climbing as traders attempt to recover from the S&P 500's losing week. The market is focused on the Federal Reserve's policy decision due Wednesday, with investors pricing in potential rate guidance that could shape near-term equity direction.

Market impact

The Fed decision is the week's primary catalyst. A hawkish hold or forward guidance suggesting sustained rates could pressure equities; dovish signals could trigger a relief rally. Volatility is likely to remain elevated until the announcement, with sector rotation favoring defensive names if recession fears persist.