US pre-open: Futures cautiously higher ahead of FOMC decision

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday as market participants monitored developments in the Middle East and awaited the Federal Reserve to make its latest interest rate policy decision. As of 1230 BST, Dow Jones futures were up 0.06%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.11% and 0.18% firmer, respectively.

The Dow closed 299.29 points lower on Tuesday, almost erasing gains recorded in the previous sessions, with investors zeroed in on the escalating conflict between Israel and Iran.

Donald Trump took to his social media to threaten Iranian leader Ayatollah Ali Khamenei, saying that the White House's patience was "wearing thin" as he called for Iran's "UNCONDITIONAL SURRENDER!". According to NBC News, Trump has been weighing his options on Iran, including whether to launch a military strike.

Wednesday's other primary focus will likely be the Federal Reserve's monetary policy decision at 1900 BST, with the central bank widely expected to hold its benchmark overnight interest rate steady at the current range of 4.25%-4.50%.

Elsewhere on the macro front, US mortgage applications decreased by 2.6% in the week ended 13 June, according to the Mortgage Bankers Association, down from the prior week's 12.5% jump. Applications to apply for a mortgage fell by 3%, while applications to refinance a mortgage dropped by 2.1%.

Still to come, weekly jobless claims data from the Labor Department will be released at 1330 BST, as will May housing starts and building permits data.





Reporting by Iain Gilbert at Sharecast.com