U.S. stock futures saw cautious movements ahead of Wednesday's session opening, as investors await the U.S. Federal Reserve's interest rate decision later today.
Markets widely expect the Fed to lower interest rates by 25 basis points today, given the recent weakness in the labor market, despite inflation remaining at levels far from the Fed's target, and increasing uncertainty about prices.
Recently, U.S. stock indices reached historical levels amidst expectations of a start to a monetary easing cycle. However, for Wall Street to sustain these gains, it depends on a less hawkish tone from Fed Chairman Jerome Powell during the subsequent press conference after the decision is announced.
Markets are looking for indications on the monetary policy path over the coming months, and whether today's cut marks the beginning of an easing cycle or is merely an exceptional measure to rescue the labor market. The U.S. stock market requires strong easing statements to achieve sharper increases in upcoming trades.
U.S. stock futures traded around these levels during pre-market transactions:
Futures for the Dow Jones Industrial Average remained stable near the previous close level of 46,143.00 points, with a marginal increase of 0.05%. Futures for the S&P 500 settled near the level of 6,668.50 points. Futures for the Nasdaq 100 are trading around the previous close level of 24,524.50 points.
