US pre-open: Futures higher ahead of FOMC decision

(Sharecast News) - Wall Street futures were in the green on Wednesday as market participants awaited the Federal Reserve's interest rate decision later in the session. As of 1300 GMT, Dow Jones futures were up 0.29%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.28% and 0.27% firmer, respectively.

The Dow closed 267.58 points lower on Tuesday, extending the blue chip's recent losing streak another day.

However, futures had stocks opening higher ahead of the bell on Tuesday as traders patiently awaited the outcome of the Federal Open Markets Committee's two-day monetary policy meeting, where the Federal Bank was widely expected to lower its benchmark overnight interest rates by a further 25 basis points. As well as the Fed's decision, chairman Jerome Powell will also deliver a speech at 1900 GMT.

Trade Nation's David Morrison said: "The prevailing view is that the Fed will accompany the rate cut with hawkish comments, indicating that it's time to take a pause in loosening monetary policy. This seems wise, given the incoming Trump administration, the recent uptick in inflation, decent US economic growth and the strength of the US stock market."

Elsewhere on the macro front, mortgage applications fell 0.70% in the week ended 13 December, according to the Mortgage Bankers Association of America, cutting into the prior week's 5.4% surge. Applications to refinance a mortgage fell 3%, while applications to purchase a home rose 1%.

Still to come, November building permits data will be out at 1330 GMT.

No major corporate earnings were slated for release on Wednesday.

Reporting by Iain Gilbert at Sharecast.com