US pre-open: Stock futures fall ahead of Fed's interest rate decision

US stocks are expected to fall on Friday as oil prices slid and investors showed caution ahead of the Federal Reserve policy meeting.

Dow Jones Industrial Average futures shed 0.4% to 17,803, S&P 500 futures dropped 0.5%, to 2,094.75 and Nasdaq futures lost 0.6% to 4,477.25.

Oil prices also declined as the dollar strengthened with US crude falling back below $50 a barrel. A stronger dollar is seen to weaken demand for crude as it makes imports bought in the currency more expensive.

At 1256 BST West Texas Intermediate crude fell 1.4% to $49.83 a barrel and Brent dipped 1.3% to $51.26 a barrel.

Meanwhile, investors held back ahead of next week’s Federal Reserve decision on interest rates. However, many economists expect the central bank will keep interest rates unchanged after a weak non-farm payrolls report last Friday and dovish remarks from Fed chair Janet Yellen.

Adding to the cautious tone, worries about Britain’s June 23 referendum on European Union membership intensified after Shadow Home Secretary Andy Burnham warned there was a "very real prospect" of a Leave vote.

Burnham’s remarks came as the Labour Party on Friday claimed that leaving the EU could lead to £18m of spending cuts and tax rises.

In economic data, the only notable releases in the US are the University of Michigan’s consumer confidence index at 1500 BST and the federal budget for May at 1900 BST.

On the company front, Twitter shares fell in pre-market trade after the social-media company on Thursday notified millions of users that their accounts are at risk of being taken over. A survey also showed Instagram was attracting more advertising than Twitter.

Tesla Motors slid ahead of the opening bell after the electric car maker came under investigation for a potential defect in the suspension of its Model S.

H&R Block gained after the tax-preparation reported better-than-expected quarterly results.

Sophiris Bio after the biotech company reported promising results in a mid-stage clinical trial of its prostate cancer treatment.