US pre-open: Futures trade higher ahead of Fed interest rate decision

Wall Street futures were in the green ahead of the bell on Wednesday ahead of a hotly anticipated interest rate decision by Federal Reserve.

As of 1220 BST, Dow Jones futures were up 0.32%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.36% and 0.28% higher, respectively.

The Dow closed 67.29 points higher on Tuesday as market participants awaited the outcome of the Federal Reserve's meeting.

The US central bank is widely expected to up interest rates by half a percentage point at Wednesday's meeting and also announce a plan to cut its approximately $9.0trn balance sheet by approximately $95.0bn a month from June.

Swissquote's Ipek Ozkardeskaya said: "Investors are holding their breath before today's FOMC decision. The Federal Reserve is expected to raise the interest rates by 50bp for the first time in two decades, and start reducing its balance sheet by $95.0bn per month to tame the rising inflation in the US.

"While the 50-bp hike is fully priced in, there is a chance for the Fed to get more aggressive and hint at a 75bp hike in a future meeting, despite the economic indicators that start showing signs of slow down."

On the macro front, US mortgage applications increased by 2.50% week-on-week in the seven days ended 29 April, according to the Mortgage Bankers Association of America.

Still to come, April ADP employment change figures will be published at 1315 BST, while March trade balance data is slated for release at 1330 BST, S&P Global's April composite and services PMIs will be on deck at 1445 BST and last month's non-manufacturing PMI from the Institute for Supply Management will follow at 1500 BST.

In corporate news, CVS Health raised full-year forecasts after Q1 earnings topped expectations, while Uber shares were in the red ahead of the opening bell after the ridesharing giant posted a wider-than-expected quarterly loss.

Yum Brands, and eBay will release their most recent quarterly figures after the close.