Stock futures rose slightly Wednesday as traders looked ahead to a potential interest rate hike announcement from the Federal Reserve later in the day.
Dow Jones Industrial Average futures gained 117 points, or 0.38%. S&P 500 futures also climbed 0.35%, and Nasdaq 100 futures traded just above the flatline.
The central bank on Wednesday is expected to deliver its third consecutive 0.75 percentage point rate hike to tame high inflation. A higher-than-expected consumer price index reading in August and hawkish comments on rate hikes from Fed leaders have weighed on stocks, with more pressure likely ahead as the central bank continues to fight inflation.
Investors will be monitoring the central bank’s longer-term projections and comments from Chairman Jerome Powell for insight into how much more interest rates can go up and how that could impact economic growth.
“Our sense is that markets could be set up for a short-lived relief rally if the Fed hikes by +75bps and Powell doesn’t ratchet up his hawkish rhetoric even further,” wrote Wolfe Research’s Chris Senyek in a note to clients. “That said, we don’t anticipate having to change our intermediate-term bearish call.”
Earnings results from Lennar, KB Homes, and Steelcase are also slated for release Wednesday. General Mills’ stock gained more than 2% in the premarket as it upped its full-year outlook. Existing home sales are due out Wednesday morning.
Treasury yields dipped Wednesday after reaching levels not seen in more than a…
