U.S. stock index futures rose early Wednesday, clawing back part of a two-day slide, as falling oil prices offered relief ahead of the Federal Reserve's rate decision. Traders priced in a near-93% chance of a move, even as doubts persisted over the central bank's next step.
Wall Street futures attempted a recovery Wednesday after a two-day slide, as falling oil prices offered some relief during a tense wait for the Federal Reserve's interest rate decision. The move, due at 2 p.m., will shape sentiment at a time when elevated Treasury yields, inflation and the escalating Middle East conflict have kept risk appetite in check.
Traders price in a move, but doubts persist
Traders saw a nearly 93% chance of an increase, according to the CME FedWatch tool, though uncertainty persists. Fed Chair Kevin Warsh was picked by President Donald Trump with the expectation that he would cut rates, so if the central bank stands pat, it could throw its credibility into question, especially as Warsh has said he remains focused on taming price pressures, analysts say.
Yung-Shin Kung, head and chief investment officer at Mast Investments, said: "We think market pricing for a rate hike may be overly confident." He added that a rate increase could be a weak tool against the primary drivers of inflation, such as tariffs and the AI infrastructure buildout.
At 4:41 a.m. ET, Dow E-minis rose 24 points, or 0.05%. S&P 500 E-minis added 11.25 points, or 0.15%. Nasdaq 100 E-minis gained 87.25 points, or 0.30%. The benchmark S&P 500 has fallen 1.3% this month as of Tuesday's close.
Oil slide pressures energy stocks
Oil prices dipped after an unexpectedly large build in U.S. crude inventories. Brent crude futures fell less than 1% to $107.72. U.S. West Texas Intermediate crude slipped 1.5% to $104.28. Energy stocks followed lower, with Chevron and ConocoPhillips each falling 0.3%.
Tech trades mixed as AI slowdown call weighs
Tech stocks were mixed in premarket trading. Nvidia rose less than 1% while Meta held flat, and Microsoft and Apple slipped marginally. Among chipmakers, Intel climbed more than 5%. Marvell Technology gained nearly 2%. A joint call by top AI executives to slow the technology's development has clouded the sector's outlook, though there is little clarity yet on what such a slowdown would look like.
Source: Investing.com
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