U.S. stock futures dipped Tuesday night as Wall Street gears up for what could be the most anticipated Fed meeting of the quarter. The Federal Open Market Committee is set to announce its interest rate decision Wednesday, and all eyes are on whether Jerome Powell and company will deliver another cut.
The three major indices are all trading in the red, though nothing too dramatic. Nasdaq Futures are down 0.19%, or 49 points, sitting at 25,650.75. The S&P 500 Futures have shed 0.08% and 5.25 points to reach 6,843.00, while Dow Jones Futures are off 0.04%, or 19 points, at 47,594.00.
According to the CME Group's FedWatch tool, markets are betting heavily on a rate cut, with the probability of a 25 basis-point reduction now sitting at 87.6%. So this isn't exactly a nail-biter in terms of what the Fed will do, but Powell's commentary afterward could move markets considerably.
Over in Asia, Japan's Nikkei 225 opened higher Wednesday but has since cooled off, trading at 50,638.59 points, down 0.03% or 16.51 points. The gains came primarily from automotive and heavy engineering stocks showing some strength.
The U.S. Dollar Index is barely budging, down just 0.01% at 99.230 against a basket of currencies as traders position ahead of the potential rate cut.
Beyond the Fed decision and Powell's speech, Wednesday brings another layer of intrigue with earnings from Oracle Corp. (ORCL) and Adobe Inc. (ADBE). Investors will be scrutinizing these reports for clues about how the broader AI investment theme is holding up in practice.
