US pre-open: Stocks set for muted start ahead of Fed minutes

US futures pointed to a muted start on Wall Street as investors awaited the latest minutes from the Federal Reserve for clues on the timing of a rate hike.

At 1100 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were up just 0.1%.

At the same time, oil prices retreated. West Texas Intermediate was down 0.6% to $46.28 a barrel and Brent crude was off 0.7% to $48.88.

The release of the minutes, due at 1900 BST, will be watched particularly closely after New York Fed President William Dudley hinted on Tuesday that a rate hike as early as September was a possibility.

Dudley told Fox Business Network: "We're edging closer towards the point in time where it'll be appropriate to raise interest rates further.”

He added that a rate hike was “possible" at the policy meeting on 20-21 September.

"We have to see how the data falls and where we are in terms of the broad supports for the economy. I think the economy is in OK shape,” Dudley said.

Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, said: “With a rate chance in September being priced at just 22%, there remains a significant disconnect in expectations between the market and some Fed members meaning that if the Fed pulls the trigger sooner than expected, market reaction could be sharp and swift.”

On the corporate front, Cisco Systems was a touch weaker in pre-market trade following a report the company is planning to axe 20% of its workforce.

Biotech company StemCells tumbled in pre-market trade following strong gains in the previous session on news it was planning to merge with Israel’s Microbot Medical.

Lowe’s Cos, Staples and Target are slated to report earnings before the opening bell.