US pre-open: Stocks to edge higher ahead of FOMC meeting
By Benjamin Chiou
Date: Wednesday 19 Mar 2025
(Sharecast News) - Stock futures were edging higher on Wednesday morning after a sharp drop the previous session, though gains are likely to be limited ahead of the Federal Open Market Committee meeting.
By 0626 in New York, Dow futures were up 0.1%, while the S&P 500 and Nasdaq were rising 0.3% each.
While no change is expected from policymakers when the FOMC meeting concludes at 1400 ET, a close eye will be kept on Fed chair Jerome Powell as he makes his outlook statement amid increased economic uncertainty as Donald Trump's trade war with the rest of the world continues.
"The Fed's latest inflation forecasts will be watched closely. The consensus seems to be that the Fed will revise down growth expectations and inflation and unemployment rate forecasts will be revised higher," said Kathleen Brooks, research director at XTB.
"If inflation forecasts are revised higher, then it makes the Fed's 2% target rate harder to achieve. If the Fed's inflation forecasts have a 3% handle, this could be the catalyst for further volatility in financial markets."
The dollar was rebounding slightly today after hitting a five-month low on Tuesday in anticipation of the Fed meeting. The US dollar index was up 0.4% at 103.65 early on.
In equity news, Autodesk futures were rising on reports that major shareholder and activist investor Starboard is considering a proxy battle to nominate a candidate to the board.
Tesla shares were also higher following a TV interview with chief executive Elon Musk, in which he defended his reputation amid an ongoing backlash to his political leanings.
Economic data is likely to be thin on the ground on Wednesday, with only the MBA mortgage applications figures scheduled for release at 0700 ET.
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