U.S. stock futures moved slightly higher on Wednesday as investors remained focused on escalating tensions in the Middle East and awaited the Federal Reserve’s latest interest rate decision.
Futures tied to the S&P 500 rose 0.2%, while Nasdaq 100 futures gained 0.3%. Dow Jones Industrial Average futures added 61 points, or 0.1%.
The cautious optimism comes after a negative trading session on Tuesday, driven by growing concern over the conflict between Israel and Iran. That day, former President Donald Trump addressed the situation on his Truth Social platform, warning Iran’s leadership that “our patience is wearing thin” and demanding “UNCONDITIONAL SURRENDER!”
According to NBC News, both current and former administration officials have confirmed that Trump is considering various options for responding to Iran, including a potential military strike.
All eyes are now on the Federal Reserve, which is set to release its latest policy decision at 2 p.m. ET. While markets broadly expect the Fed to hold interest rates steady, attention is turning to Fed Chair Jerome Powell’s post-meeting remarks for clues about future policy direction.
Investors are also watching for the updated “dot plot” projections from the Federal Open Market Committee, which outline policymakers’ individual forecasts for interest rates.
In Tuesday’s session, energy stocks were the lone bright spot, climbing 1.03% amid rising geopolitical tensions. In contrast, the health care sector posted the largest decline, falling 1.64%.
Health care, along with materials and consumer discretionary stocks, has now fallen more than 10% below its 52-week highs.
