07:37 AM EDT, 05/06/2025 (MT Newswires) -- US equity futures were tracking in the red on Tuesday ahead of the Federal Reserve's latest two-day monetary policy meeting, which will be closely watched amid ongoing tariff-related uncertainties.

The S&P 500 declined 0.6%, the Dow Jones Industrial Average decreased 0.5%, and the Nasdaq was off 0.8% in premarket activity. The indexes finished Monday's trading session lower, with the S&P 500 and the Dow snapping their nine-day winning streak.

The Fed's monetary policy committee is scheduled to kick off its meeting on interest rates today with a decision due Wednesday. Markets are widely expecting the central bank to hold the benchmark lending rate steady, according to the CME FedWatch tool.

"After holding rates steady at its January and March meetings, the Fed is again likely to keep rates unchanged in a range of 4.25-4.50% this week as the committee continues to assess the impact of fiscal policy measures on the economy," Stifel said in a Monday note.

The Trump administration is "very close" to some trade deals," US Treasury Secretary Scott Bessent told CNBC in an interview on Monday.

"I think we could see substantial progress in the coming weeks," Bessent said about potential US-China tariff negotiations.

India has proposed zero tariffs on certain imports from the US, including steel and auto components, on a reciprocal basis up to a certain quantity, Bloomberg reported Monday.

The two-year US Treasury yield retreated 1.9 basis points to 3.82% in premarket action, while the 10-year rate rose 1.2 basis points to 4.36%.

Shares of Palantir Technologies ( PLTR ) dropped 9.2% pre-bell, even though the data analytics software maker lifted its full-year revenue outlook. Ford Motor ( F ) declined 2.2% as the automaker suspended its full-year guidance due to uncertainty tied to tariffs.

Ferrari (RACE), Duke Energy ( DUK ) , Transdigm Group ( TDG ) , Marriott International ( MAR ) , American Electric Power ( AEP ) , Fidelity National Information Services ( FIS ) , Datadog ( DDOG ) , Royal Philips(PHG), Archer-Daniels-Midland ( ADM ) and Global Payments ( GPN ) report their latest financial results before the bell, among others. Advanced Micro Devices ( AMD ) and Arista Networks ( ANET ) post earnings after the markets close.

On Monday, data from the Institute for Supply Management showed that growth in the US services sector unexpectedly accelerated last month, while an S&P Global (SPGI) survey indicated that activity almost stalled.

Tuesday's thin economic calendar has the international trade in goods and services report for March at 8:30 am ET.

West Texas Intermediate crude oil advanced 2.6% to $58.64 a barrel before the opening bell. Bitcoin slipped 0.4% to $94,175, while gold inclined nearly 2% to $3,387 per troy ounce.