S&P 500 futures fall as Wall Street braces for Fed rate decision: Live updates

S&P 500 futures slipped Tuesday night as investors looked ahead to the Federal Reserve's rate policy decision.

Futures linked to the broad market index slipped 0.2%, while Nasdaq 100 futures dropped 0.4%. Dow Jones Industrial Average futures ticked lower by 8 points, or 0.02%. 

In after-hours trading, Amazon advanced about 1% following better-than-expected earnings and revenue in the first quarter. Chipmaker Advanced Micro Devices tumbled more than 6% after issuing an in-line revenue forecast for the current quarter, while Super Micro Computer slid 9% as revenue came in slightly below the Street's consensus estimates.

During Tuesday's main trading session, the Dow and S&P 500 both shed more than 1%. The tech-heavy Nasdaq Composite declined 2%. Bond yields jumped after the first quarter's employment cost index came in higher than anticipated, reigniting worries that the Fed will keep interest rates high.

The month ended on a sour note for all three major averages, with the S&P 500 and the Nasdaq posting losses of more than 4% in April. The Dow fell 5% for its worst monthly performance since September 2022.

Traders are now looking toward the Fed's interest rate decision on Wednesday afternoon. The central bank is widely expected to hold interest rates steady, according to fed funds futures pricing data. Wall Street will be looking for clues from Fed Chair Jerome Powell on what needs to happen before rates can come down. 

"The concern is that the Fed will definitely be slower to lower interest rates," said CFRA chief investment strategist Sam Stovall. "They realize that inflation is remaining fairly sticky. I think they want to just take more of a 'wait and see' approach, and wait for the inflation numbers to start coming back