US stock futures nudged slightly lower Wednesday morning as Wall Street waited for the Federal Reserve’s final policy decision of the year.
Dow Jones Industrial Average futures (YM=F) and contracts tied to the S&P 500 (ES=F) fell about 0.1%. Futures on the Nasdaq 100 (NQ=F) dropped 0.2%.
The relatively muted action follows several sessions of sideways trading as investors hold off on big bets ahead of the Fed’s announcement. Markets are pricing in a nearly 90% chance the central bank will deliver its third consecutive quarter-point rate cut, according to the CME FedWatch tool.
But the decision isn’t without tension. FOMC members remain split, with some officials arguing that easier policy is needed to support a cooling labor market, others warn further easing could risk reigniting inflation. Traders will be watching the post-meeting statement, set for release at 2 p.m. ET Wednesday, and Chair Jerome Powell’s press conference for clues on how the committee is thinking about the path forward.
Meanwhile, global bond yields rose to highs last seen in 2009 ahead of the decision, a sign investors are concerned that interest-rate cutting cycles from the US and elsewhere may be ending soon. Silver (SI=F) extended gains after breaking above $60 an ounce for the first time.
In corporates, GameStop (GME) stock fell 6% before the bell on Wednesday after missing quarterly revenue estimates on Tuesday. US manufacturer GE Vernova (GEV) shares rose 10% during premarket trading after doubling its dividend. And Cracker Barrel (CBRL) fell 8% after reporting lower-than-expected sales in its fiscal first quarter after backlash around its logo change.
The tech trade will get a key test Wednesday with an earnings report from Oracle (ORCL), as Wall Street increasingly looks to the cloud firm as proxy for the AI trade. Broadcom (AVGO), Costco (COST), and Lululemon (LULU) are set for earnings reports on Thursday.
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