US stock futures muted as oil holds near April highs ahead of Fed decision
SPY•U.S. stock futures were little changed as oil hovered near a six-week high and investors awaited the Federal Reserve’s rate decision and corporate earnings. Markets widely expect the Fed to hold rates steady Wednesday, while pricing in at least two more increases by mid-2027.
1. Futures little changed
At 5:17 a.m. ET, Dow E-minis were up 0.14%, S&P 500 E-minis rose 0.05% and Nasdaq 100 E-minis gained 0.01%. Brent crude traded near its highest level since late April after slipping in the previous session.
2. Fed and earnings ahead
The Fed is widely expected to hold rates steady Wednesday after raising them last month. Markets are pricing in at least two more hikes by mid-2027 as inflation indicators remain elevated amid the U.S.-Iran conflict. BNY’s John Velis said the firm does not expect a rate move this week, but would not oppose a hike.
3. Stocks and AI spending
Tesla rose close to 1% in premarket trading, while Meta was flat after increasing its equity fundraising to $97.5 billion to fund AI expansion. Whirlpool fell 8.8% after reporting a third-quarter loss and missing revenue estimates. Investors are also watching earnings from major companies and signs of whether heavy AI investment is generating growth.
