US pre-open: Futures mixed ahead of FOMC decision

Wall Street futures were mixed ahead of the bell on Wednesday as market participants awaited the outcome of the FOMC's two-day policy meeting.

As of 1300 GMT, Dow Jones and S&P 500 futures were down 0.37% and 0.17%, respectively, while Nasdaq-100 futures had the index opening 0.09% firmer.

The Dow closed 368.95 points higher on Tuesday, reversing losses recorded in the previous session.

Wednesday's primary focus will be the Federal Reserve's interest rate decision at 1900 GMT, which will be followed by a press conference at 1930 GMT. Economists and traders widely expect the central bank to hike rates from 4.5% to 4.75%.

Markets.com's Neil Wilson said: "Ain't nothing but the Fed today as investors focus on the FOMC interest rate decision. The Fed is all but certain to raise rates by 25 basis points but the complacency we see sets up for a volatility-driven event if Powell pushes back hard – and why not?

"There is no reason for the Fed to signal a pause – financial conditions have loosened considerably, inflation remains high, the labour market tight and commodity-linked inflation could be rearing its head again. However, as we have seen countless times, the market is willing to take a dovish read to just about anything the Fed says."

On the macro front, US mortgage applications tumbled 9% in the week ended 27 January, according to the Mortgage Bankers Association of America, with applications for refinancing falling 7.1% and purchase applications slumping 10.3%. The fall comes despite the average contract interest rate for 30-year fixed-rate mortgages slipping one basis lower to 6.19% - the lowest level seen since September 2022.

Still to come, ADP employment change figures will be out at 1315 GMT, while S&P Global's January manufacturing PMI will follow at 1445 GMT, and December construction spending figures and the ISM's manufacturing PMI will follow at 1500 GMT.

In the corporate space, T-Mobile and Boston Scientific will report earnings before the open, while Facebook parent company Meta Platforms and Netgear will publish their latest sets of quarterly results after the close.

Reporting by Iain Gilbert at Sharecast.com