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A screen showing the Shanghai composite index (top), Shenzhen component index (C) and Beijing stock exchange 50 index (bottom) in Jing'an district in Shanghai on April 9, 2025.
Hector Retamal | Afp | Getty Images
Asia-Pacific markets were set to mostly climb, tracking Wall Street gains after the U.S. Federal Reserve expectedly kept rates unchanged.
Japan's benchmark Nikkei 225 is set to open higher, with the futures contract in Chicago at 37,010 while its counterpart in Osaka last traded at 36,960, against the index's last close of 36,779.66.
Futures for Hong Kong's Hang Seng index stood at 22,466, higher than HSI's last close of 22,691.88.
Australia's benchmark S&P/ASX 200 is set to rise with futures standing at 8,188, up from the index's close of 8,178.3.
The Federal Open Market Committee held its benchmark overnight borrowing rate in a range between 4.25% to 4.5%, where it has been since December. The decision was largely expected.
Federal Reserve Chair Jerome Powell warned in his press conference that if the significant tariff hikes already announced remain at current levels, they could lead to a slowdown in economic growth and an uptick in long-term inflation.
Investors are also eagerly waiting for updates on the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent and his Chinese counterpart are set to meet in Switzerland this week to address trade and economic issues.
U.S. futures were relatively unchanged on the heels of the expected Federal Reserve's decision even as it highlighted rising inflation and unemployment risks.
S&P 500 futures traded down by 0.1%, along with Nasdaq-100 futures. Futures tied to the Dow Jones Industrial Average dropped 42 points, or 0.1%.
Overnight stateside, the three major averages closed higher. The S&P 500 rose during choppy trading, adding 0.43% to close at 5,631.28 while the Nasdaq Composite gained 0.27% to end at 17,738.16. The Dow Jones Industrial Average climbed 284.97 points, or 0.70%, and settled at 41,113.97.
— CNBC's Pia Singh and Alex Harring contributed to this report.
Powell acknowledges increasing uncertainty, downside risks
Federal Reserve Chair Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building on May 7, 2025 in Washington, DC.
Andrew Harnik | Getty Images
Fed Chair Jerome Powell acknowledged rising headwinds to the central bank's dual mandate on Wednesday.
"My gut tells me that uncertainty about the economy is extremely elevated. The downside risks have increased," Powell told reporters.
However, he added, "The risks of higher unemployment and higher inflation have risen, but they haven't materialized yet. … And that tells me more than my intuition," reiterating the Fed's decision to keep interest rates unchanged.
— Hakyung Kim
Stocks end Wednesday higher
Major U.S. indexes closed Wednesday in the green, capping a volatile session for stocks as investors digested updates from the Federal Reserve and new developments on trade.
The S&P 500 added 0.43% to finish the session at 5,631.26, while the tech-heavy Nasdaq Composite gained 0.27% to end at 17,738.16. The Dow Jones Industrial Average gained 284.97 points, or 0.7%, to close at 41,113.97.
— Pia Singh
Trump says he will not lower China tariffs ahead of negotiations
US President Donald Trump speaks during a swearing-in ceremony for the Ambassador to China, former Republican Senator of Georgia, David Perdue, in the Oval Office of the White House in Washington, DC, May 7, 2025.
Jim Watson | Afp | Getty Images
President Donald Trump told reporters Wednesday that he would not lower tariffs on China as a condition to begin trade negotiations. Members of Trump's team are set to meet with Chinese officials in Switzerland this weekend to discuss trade matters.
The U.S. president also indicated that fentanyl was still a key issue in any potential discussions.
"They have to stop fentanyl from coming in. That'll be a very big part," Trump said.
— Jesse Pound, Laya Neelakandan
English (US)