US pre-open: Futures slip as Fed decision looms
By Iain Gilbert
Date: Wednesday 10 Dec 2025
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday as market participants braced for the outcome of the Federal Resreve's two-day policy meeting.
As of 1225 GMT, Dow Jones futures were down 0.08%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.09% and 0.22% softer, respectively.
The Dow closed 179.03 points lower on Tuesday as Nvidia shares headed south after Donald Trump approved H200 chip sales to China as part of a deal that will see the US government receive a 25% cut.
Early on Wednesday, investor attention remained firmly on the Federal Reserve's upcoming policy decision, due at 1900 GMT, with markets betting the central bank will lower its key overnight lending rate by another quarter point at its final meeting for the year, repeating moves made in September and October.
According to CME's FedWatch tool, traders now see an 87% chance of the Fed delivering its third-straight interest rate cut, up from less than 67% a month ago.
Market participants will also be looking to gauge further insight into FOMC members' sentiment from the post-meeting statement and chairman Jerome Powell's highly anticipated news conference.
Rostro's Joshua Mahony said: "The key question today is whether this turns out to be perceived as a hawkish cut, with the narrative likely to be shaped by expectations of future policy rather than weather we see the Fed cut rates today. With market pricing a 90% chance that the committee ease today, there will be a focus on the dot plot and economic forecasts to guide us on the pathway for 2026.
"Nonetheless, what the committee cannot account for in their projections is the fact that the Fed could look very different before long, with a new Trump appointed Chair in May and efforts to oust Lisa Cook ongoing. Nonetheless, for today the gains seen for the dollar highlight growing fear that optimism over a cut could soon turn to concern that we have to wait months for the next move. With US markets having already recovered much of the downside seen in November, monetary policy looks an unlikely source of optimism to carry those gains through to year end."
Elsewhere on the macro front, mortgage applications rose by 4.8% week-on-week in the seven days ended 5 December, according to the Mortgage Bankers Association of America, rebounding from a three-month low. Applications to refinance a home loan surged 14.3% on the prior week, while applications to purchase a home declined 2.4%. On an annualised basis, refinance applications were 88% higher and purchase aplications increased 19%. Last week's reading came as the Federal Housing Administration's 30-year fixed-rate fell to 6.08%, the lowest level since September 2024.
In the corporate space, Oracle and Adobe will both report their latest quarterly results after the close.
Reporting by Iain Gilbert at Sharecast.com
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