U.S. stock futures showed volatility as investors awaited the Federal Reserve's interest rate decision. Early in the day, futures struggled for direction but later edged higher, with the S&P 500 futures gaining 0.2%, Nasdaq-100 futures rising 0.3%, and Dow futures climbing 31 points (0.1%). The VIX, a measure of market volatility, dipped as investors braced for the Fed's decision. The Federal Reserve ultimately decided to keep interest rates unchanged, maintaining the federal funds rate at a range of 4.25% to 4.5%. This decision was in line with market expectations, and the Fed signaled its intention to implement two rate cuts later in the year, each by 25 basis points. Following the announcement, the VIX tumbled, reflecting increased market confidence. U.S. stocks rallied significantly after the Fed's announcement, with the Dow jumping 200 points initially and later 500 points, marking the best performance on a Fed decision day since July. The S&P 500 increased by 1.1%, the Nasdaq by 1.4%, and the Russell 2000 by 1.5%. The Dow Jones Industrial Average rose 0.9%, driven by hopes of future rate cuts. The rally was attributed to relief among investors after Fed Chair Jerome Powell indicated that the central bank saw no need for drastic action in response to tariffs and their potential impact on inflation. Powell described the impact of tariffs on consumer prices as likely being 'transitory.'