New York — U.S. stock futures edged higher early Wednesday as investors looked to recover from two consecutive losing sessions while awaiting the Federal Reserve’s latest interest-rate decision.
At 4:41 a.m. ET, Dow E-minis gained 24 points, or 0.05%, while S&P 500 E-minis climbed 11.25 points, or 0.15%. Nasdaq 100 E-minis advanced 87.25 points, or 0.30%.
The Federal Reserve was due to announce its decision at 2 p.m. ET, putting the meeting at the center of market attention as investors contended with elevated Treasury yields, persistent inflation and rising geopolitical uncertainty linked to the Middle East.
According to the CME FedWatch Tool, markets were pricing in nearly a 93% probability of an interest-rate increase.
Questions nevertheless remained about the broader policy outlook. Analysts have raised doubts about how effective higher interest rates can be in addressing some of the inflationary pressures currently facing the economy, including tariffs and substantial investment in artificial intelligence infrastructure.
Yung-Shin Kung, head and chief investment officer at Mast Investments, said expectations for a rate increase may be too confident.
Through Tuesday’s close, the S&P 500 had declined 1.3% in September. The recent losses have reflected investor reassessments of monetary policy as well as concerns about how higher borrowing costs could affect economic activity and corporate valuations.
Falling oil prices offered some relief to equities on Wednesday. Brent crude futures slipped less than 1% to $107.72 a barrel, while U.S. West Texas Intermediate crude fell 1.5% to $104.28.
The declines came after U.S. crude inventories increased by more than expected.
Energy shares weakened in premarket trading, with Chevron and ConocoPhillips each down 0.3%.
Technology stocks were mixed. Nvidia gained less than 1%, while Meta was little changed. Microsoft and Apple moved slightly lower.
Chipmakers were among the stronger performers. Intel climbed more than 5%, while Marvell Technology rose nearly 2%.
The technology sector has also faced uncertainty over the pace of future artificial intelligence development. A joint call by leading AI executives for a slowdown in technological development has introduced another uncertainty for investors, though its practical market implications remain unclear.
For markets, however, the Federal Reserve remained the immediate focus. Investors were watching not only for the rate decision but also for comments from Fed officials that could provide clues about the future direction of monetary policy.
High energy prices, inflation pressures and elevated government bond yields have increased the importance of the central bank’s communication for equity markets.
The Fed’s decision and whether it shifts expectations for future borrowing costs could affect stocks, bonds and currencies in the trading sessions ahead.
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