The shooting happened at around 12:30 a.m. Sunday at Ferry and Prospect Streets in the Ironbound section.
The victims, a man and a woman, were taken to the hospital in stable condition. Their injuries are not life threatening.
Police are trying to figure out if the victims were the intended targets of the shooting. They were both attending the festival.
No arrests were immediately made.
At this point there have been no changes to the schedule for Sunday. The parade is still expected to happen at 3 p.m.