Stock futures were largely flat in overnight trading as investors braced for the Federal Reserve’s big interest rate decision on Wednesday.
Stock futures inched higher in overnight trading as investors braced for the Federal Reserve’s big interest rate decision on Wednesday, where the central bank is widely expected to hike rates by half a percentage point. Futures on the Dow Jones Industrial Average were flat. S&P 500 futures inched 0.11% higher, and Nasdaq 100 futures rose 0.19%. Markets are preparing for a hawkish Fed, and the central bank is also expected to announce a plan to cut its roughly $9 trillion balance sheet by $95 billion a month, beginning in June. Respondents to the May CNBC Fed Survey indicated they expect the central bank to announce the long-anticipated 50 basis point hike on Wednesday, followed by a second one in June as it looks to cut its balance sheet. The majority of respondents also expect a recession at the end of the tightening cycle, the survey found.
