U.S. stock futures treaded water in cautious trading on Wednesday as investors tried to gauge whether the Federal Reserve had changed its mind about the number of rate cuts this year.
S&P 500 (^GSPC) futures were little changed after the benchmark closed at a new all-time high. Dow Jones Industrial Average (^DJI) futures are trading below the flat line, while tech-heavy Nasdaq 100 (^NDX) futures are up slightly.
Investors are weighing the risk of a change in the Fed's stance and are treading cautiously ahead of the policy statement that will be released after the two-day meeting. No changes in interest rates are expected on Wednesday afternoon, but the Dot Plot will be closely watched for any movement in the outlook for the coming months.
Wall Street analysts expect policymakers to cut interest rates in 2024 from the previous three years after recent higher-than-expected inflation and signs of strength in the U.S. economy. I suspect that it is. These uncertainties could weigh on stock prices and their recent gains.
Bonds could come under pressure after the Fed releases its statement at 2pm ET. The 10-year Treasury yield (^TNX) fell slightly to about 4.28% after rising more than 20 basis points over the past two weeks.
On the corporate front, Kering (KER.PA) (PPRUY) warned that first-quarter sales for Gucci, its biggest brand, were down 20%. The luxury goods group's shares fell as much as 15% in Paris, wiping out $7.6 billion of its market value.
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