Stock futures rose slightly on Wednesday as investors awaited the Federal Reserve’s interest rate decision and May’s consumer inflation data. Dow Jones Industrial Average futures increased by 0.1%, while S&P 500 and Nasdaq 100 futures also ticked up by the same percentage.
Oracle saw a 9% jump in its stock price after announcing new cloud deals with Google and OpenAI, despite missing expectations in its latest quarter. Apple’s push into artificial intelligence at its developer conference helped lift the S&P 500 and Nasdaq Composite to record highs on Tuesday, while the Dow lagged behind, losing 0.31%.
Investors are eagerly awaiting the conclusion of the Fed’s two-day policy meeting, where a rate policy decision will be made and Fed Chair Jerome Powell will hold a press conference. The market expects the Fed to maintain its benchmark overnight borrowing rate, but will be closely watching for updates to the Summary of Economic Projections to gauge the future path of monetary policy. Concerns about a potential increase in interest rates linger as recent strong jobs data and persistent inflation levels support a higher-for-longer rate environment.
Chief global strategist for LPL Financial, Quincy Krosby, emphasized the market’s focus on any mention of concerns about the labor market in the Fed’s statement, the dot plot, or Chair Powell’s comments. Any signs of deterioration could prompt a change in rates. Additionally, May’s consumer price index report, expected to show a 0.1% increase from April and a 3.4% rise year-over-year, will be released on Wednesday morning.