US pre-open: Futures mixed ahead of FOMC policy decision

Wall Street futures were pointing to a mixed open on Wednesday ahead of an update on the state of the nation's economy from the Federal Reserve later in the day.

As of 1250 BST, Dow Jones futures were down 0.08%, while S&P 500 and Nasdaq futures were up 0.09% and 0.49%, respectively.

The Dow Jones closed 300.14 points weaker on Tuesday as the blue-chip index pumped the breaks on its comeback rally amid heightened concerns around another spike in Covid-19 cases and trade tensions between the US and the EU.

The key even on Wednesday agenda is an update from the Federal Open Market Committee, which started its two-day policy meeting on Tuesday.

While the central bank is not expected to enact any major policy shifts, with its benchmark rate already near zero and asset purchasing programs continuing, market participants will still be keeping a keen eye out for indications that the Fed could possibly implement yield caps or strengthen forward guidance on how long it will keep its current policies in place.

The Fed's interest rate decision will be published at 1900 BST, while chairman Jerome Powell will address the media at 1930 BST.

US government debt prices were also higher ahead of the open and Powell's conference, with the benchmark 10-year Treasury note lower at 0.8171% and the yield on the 30-year Treasury bond also down at 1.5676%.

Also in macro news, mortgage rates held near record lows last week, leading to a wave of refinancing and purchasing applications.

The Mortgage Bankers Association said 30-year fixed rates for conforming loan balances of less than $510,400 ticked up 1 basis point higher to 3.38% for the week ending 5 June, just off last week's all-time low and a whole 1% softer year-on-year.

The MBA's refinancing index rose 11.4% to 3,529.0 points, recording its first weekly gain in two months.

Still to come on the data front, a reading on inflation will be published at 1330 BST.

In the corporate space, Facebook, Apple, Amazon and Microsoft all closed at all-time highs in the previous session amid a rally in major tech shares that helped the Nasdaq stay in the green.