Stock futures were muted early Wednesday as investors braced for the Federal Reserve’s next move in its inflation-fighting rate hiking plan, APA reports citing CNBC.
Futures tied to the Dow Jones Industrial Average fell 18 points, or 0.05%. S&P 500 futures added 0.03% and Nasdaq 100 futures gained 0.03%.
In regular trading the major averages rose for a second day. The Dow Jones Industrial Average added 316 points, or nearly 1%. The S&P 500 jumped 1.3%, and the Nasdaq Composite gained 1.58%.
The moves came as fears over the ongoing banking crisis showed signs of easing, with investors “heartened by the increasing likelihood that the end of Fed policy tightening is near,” said Brian Levitt, global market strategist for Invesco.
“Fed tightening cycles typically end with a crisis, and those crises tend to end with policy responses. That may help to explain today’s market moves,” he added.
Investors are looking forward to the latest update from the Fed, at the conclusion of its two-day policy meeting on Wednesday. Most investors expect the central bank to stay committed to its tightening and raise rates by 25 basis points.