Futures Pointing To Roughly Flat Open Ahead Of Fed Announcement

The major U.S. index futures are currently pointing to roughly flat open on Wednesday, with stocks likely to extend the lackluster performance seen over the two previous sessions.

Traders may be reluctant to make significant moves ahead of the Federal Reserve’s latest monetary policy announcement this afternoon.

The Fed is seen as most likely to leave interest rates unchanged, although there is some concern about the possibility of a surprise rate hike.

CME Group’s FedWatch Tool is currently indicating a 64.2 percent chance the Fed leaves rates unchanged and a 35.8 percent chance of a quarter point increase.

In the past, traders have looked to the accompanying statement for clues about the outlook for rates, although the pared down statement under new Fed Chair Kevin Warsh may not provide much insight.

Traders may also stick to the sidelines ahead of the release of earnings news from tech giants Meta Platforms (META) and Microsoft (MSFT) after the close of today’s trading.

The companies’ results could impact the outlook for the tech trade amid recent concerns about valuations and AI spending.

Following the lackluster performance seen in Monday’s session, stocks continued to experience choppy trading during Tuesday’s session.

While the Dow showed a strong move to the upside, the Nasdaq and the S&P 500 spent much of the day lingering near the unchanged line after recovering from early weakness.

The Dow closed higher for the third straight session, jumping 537.24 points or 1 percent to 52,747.32. The S&P 500 also rose 15.60 points or 0.2 percent to 7,428.78, but the tech-heavy Nasdaq dipped 55.17 points or 0.2 percent to 24,876.91.

The advance by the Dow came as shares of Sherwin-Williams (SHW) moved sharply higher, with the paint maker spiking by 8.3 percent after reporting better than expected second quarter results and raising its full-year guidance.

Shares of Coca-Cola (KO) also surged by 5 percent after the beverage giant reported second quarter results that exceeded expectations and hiked its full-year outlook.

Meanwhile, weakness among technology stocks weighed on the Nasdaq, with semiconductor stocks turning in some of the worst performances.

The Philadelphia Semiconductor Index plunged by 4.5 percent, closing lower for the fourth straight day and tumbling to its lowest closing level in well over two months.

Considerable weakness was also visible among computer hardware stocks, as reflected by the 2.5 percent slump by the NYSE Arca Computer Hardware.

Outside of the tech sector, oil service stocks also significant weakness amid an extended nosedive by the price of crude oil.

Meanwhile, pharmaceutical stocks showed a strong move to the upside, driving the NYSE Arca Pharmaceutical Index up by 2.3 percent to a record closing high.

Telecom, airline and housing stocks also turned in strong performances, helping to offset the weakness in the tech sector.

Commodity, Currency Markets

Crude oil futures are soaring $5.12 to $84.38 a barrel after plummeting $3.35 to $79.26 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,016.10, down $22.60 compared to the previous session’s close of $4,038.70. On Tuesday, gold tumbled $38.30.

On the currency front, the U.S. dollar is trading at 163.76 yen compared to the 163.82 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1378 compared to yesterday’s $1.1385.

Asia

Asian stocks ended mixed on Wednesday, with AI valuation concerns and fresh U.S.-Iran tensions keeping investors on edge.

The dollar eased, while gold edged up to $4,043 an ounce as focus shifted to the Federal Reserve’s interest rate decision later in the day.

With the new Fed chief scrapping forward guidance, experts remain divided over whether the U.S. central bank will hold interest rates steady or surprise with a rate hike.

Brent crude futures jumped more than 3 percent toward $87 a barrel, snapping a three-day losing streak as hostilities continued in the Middle East and industry data pointed to continued tightness in global oil supplies.

U.S. Central Command said Iran had launched multiple ballistic missiles targeting U.S. troops across the Middle East that were successfully intercepted.

Saudi Arabia said it intercepted drones launched from Iraq and a Saudi tanker came under Houthi attack, underlining persistent regional tensions.

Iran reportedly rejected Oman’s proposal for shared 50-50 control of the Strait of Hormuz, maintaining that it “will accept no formula” other than full control of the inbound shipping lane and part of the outbound route.

China’s Shanghai Composite Index rose 0.4 percent to 3,828.47 as AI-linked shares continued to face selling pressure on valuation concerns. Hong Kong’s Hang Seng Index jumped 2 percent to 25,807.92, led by strong gains in internet platform companies.

Japanese markets fell sharply to hit a two-month low ahead of big tech earnings and an upcoming BoJ rate decision. The Nikkei 225 Index tumbled 1.5 percent to 61,434.19, while the broader Topix Index closed 0.3 percent higher at 3,974.03.

Technology investor SoftBank lost nearly 7 percent, while Kioxia Holdings, a flash memory chipmaker, plummeted 13.9 percent.

Seoul stocks plunged as skepticism grew over whether massive spending on artificial intelligence by major technology companies could generate sufficient returns to justify their lofty market valuations.

The Kospi Index dove 6 percent to 5,663.24 following a nearly 11 percent crash the previous session. Chipmaker SK Hynix tumbled 9.6 percent despite the company reporting a six-fold increase in quarterly earnings amid surging demand for its advanced memory chips.

Australian markets rallied after data showed headline inflation cooled to 3.8 percent in the 12 months to June, prompting traders to scale back their rate-hike bets.

The benchmark S&P/ASX 200 Index jumped 1 percent to 9,038.60, extending gains for the third straight session amid broad-based gains.

The broader All Ordinaries Index settled 1 percent higher at 9,199.70. Rio Tinto shares surged 3.7 percent after the miner reported a 47 percent increase in first-half profit.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index climbed 0.8 percent to 13,976.67, hitting a new record high on optimism over U.S.-Iran peace talks.

Europe

European stocks are subdued on Wednesday as joint strikes in Iraq by the United States and Saudi Arabia raised concerns about a prolonged war in the Middle East.

Caution ahead of big tech earnings and the Federal Reserve’s interest rate decision later in the day also kept investors on edge.

While the French CAC 40 Index is down by 0.8 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.1 percent.

In corporate news, shares of Logitech International slumped 7.2 percent. The Swiss computer peripherals maker has warned that a temporary factory shutdown at a supplier’s factory could reduce its third-quarter sales by up to $200 million.

Wealth manager UBS gained 3.3 percent after posting solid second-quarter earnings and unveiling plans to buy back $3 billion in its own stock over the coming year.

Rio Tinto rose 1.3 percent after the miner reported a 47 percent increase in first-half profit.

Commodity trader Glencore advanced 2.8 percent after earnings from trading commodities doubled in the first half of the year.

Greggs, Britain’s biggest fast-food chain, soared 12 percent after reporting a better-than-expected 19.7 percent rise in pre-tax profit for the first half of 2026.

Dettol maker Reckitt Benckiser surged 5.3 percent after delivering a “strong” second quarter and maintaining its annual forecast.

Lender Standard Chartered surged 3.7 percent after announcing higher quarterly profit and a $1bn share buyback.

French spirits group Remy Cointreau tumbled 3.6 percent despite reporting stronger-than-expected first-quarter sales and confirming full-year targets.

Food maker Danone lost 4.5 percent despite posting solid first-half results.

Belgian chemicals group Solvay rallied 3.4 percent after Q2 core profit topped expectations.

Italian energy group ENI advanced 4.2 percent. The company lifted the size of its share buyback program after reporting strong second-quarter 2026 results.

Electrolux shares skyrocketed 24 percent. The Swedish household appliance maker reported a bigger-than-expected profit for the second quarter.

German lender Deutsche Bank rallied 5 percent after reporting a record second-quarter profit.

Chemical and biotech giant BASF climbed 4 percent after an announcement that it would launch a €1 billion share buyback program in August.

Power producer RWE added 2 percent after raising its 2026 and 2027 earnings outlook.

U.S. Economic News

The Energy Information Administration is due to release its crude oil inventories in the week ended July 24th at 10:30 am ET. Crude oil inventories are expected to decreased by 2.5 million barrels.

At 2 pm ET, the Federal Reserve is scheduled to announce its latest monetary policy decision, followed by Fed Chairman Kevin Warsh’s post-meeting press conference at 2:30 pm ET.