Stock futures rise ahead of Fed decision as oil prices decline: Live updates

Stock futures gained on Wednesday morning ahead of the latest interest rate decision from the Federal Reserve as the recent pop in oil prices eased and Treasury yields backed off multi-year highs.

Futures tied to the Dow Jones Industrial Average gained 96 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures each added 0.2%.

Crude oil prices declined slightly after topping $92 on Tuesday, which raised concerns higher energy prices would rekindle inflationary forces and slow the global economy.

The 10-year Treasury yield eased on Wednesday after touching the highest yield since 2007 a day before. Investors are hoping that market rates will start to reverse as inflation eases and the Fed backs off from its hiking campaign for good.

The Fed is widely expected to hold rates steady at 2 p.m. ET, but investors will be paying close attention to the summary of economic projections and the press conference of Fed chair Jerome Powell for clues as to whether the central bank will hike one more time this year.

The Fed hiked its benchmark rate in July to the highest level in more than 22 years. Fed futures prices signals just a slight chance of about 29% that the Fed would raise rates in November.

“The number one thing we’re watching for, and what investors are looking for, is where are longer term expectations: Where is that terminal rate,” said Dylan Kremer, co-chief investment officer at wealth management firm Certuity.

“And ultimately we expect to downplay any inflationary items that have come out recently, such as the oil markets,” he added.

Trading has been mostly quiet so far this week, seemingly on hold ahead of the Fed meeting. On Tuesday, the Dow shed just over 100 points, or 0.3%, while the S&P 500 and Nasdaq Composite dropped 0.2% each.