US pre-open: Stock futures flat, markets pause ahead of FOMC minutes
US stocks were expected to open flat on Wednesday as nervousness ahead of the minutes from the latest Federal Reserve prompted investors to sit on their hands after the recent rally.
Equity markets have performed well since the start of the week on the back of an easing of tensions in Ukraine and some decent US housing-market data, leading to two consecutive closing record highs for the Nasdaq.
However, stock futures were unchanged across the Nasdaq, S&P 500 and Dow Jones Industrial Average as of 07:23 in New York.
"This latest rally in stocks has been supported by some goldilocks economic data that is good enough to support corporate profits but not so good as to risk a change in stance at the Federal Reserve over keeping interest rates close to zero," said Jasper Lawler, a market analyst at CMC Markets.
"Expectations for low rates for 'a considerable period' in the US could be called into question if there are murmurings of a change in sentiment in the latest Fed minutes," he said.
Minutes from last month's Federal Open Market Committee (FOMC) meeting will on Wednesday afternoon and could spark some volatility on financial markets.
The FOMC delivered a relatively hawkish message about inflation at its latest meeting, lifting its medium-term forecasts for price rises.
Investors may also be on the lookout for comments about the Fed's exit strategy from its quantitative easing programme which is on course to finish in October.
In corporate news, Apple is likely to be closely watched after reaching a record close on Tuesday evening. The stock finished at $100.53, ahead of the previous closing record set in September 2012, on the back of optimism surrounding the gadget giant's upcoming new products.
Home-improvement retailer Lowe's was lower in pre-market trade despite beating analysts' forecasts with its second-quarter profits, as the company cut its revenue guidance for the full year.
BC