U.S. stock futures edged higher early Wednesday as investors looked past another weak Wall Street session and turned their attention to the Federal Reserve’s highly anticipated rate decision.
The Federal Reserve is widely expected to raise interest rates for the first time in three years, with markets pricing in a 92.5% probability of a hike at today’s meeting.
As of 4:00 a.m. ET, Nasdaq futures rose 0.4%, S&P 500 futures gained 0.1%, while Dow and Russell 2000 futures were flat with a positive bias.
The Fed will release its policy decision at 2 p.m. ET, followed by updated economic projections and Fed Chair Kevin Warsh’s press conference at 2:30 p.m.
This meeting comes amid a mixed macro backdrop, with crude oil above $100 a barrel and the 10-year Treasury yield above 5%, raising concerns about higher borrowing costs.
Investment advisor Gary Black said on X that an immediate 25-basis-point rate increase would be healthier for stock markets than risking a prolonged tightening cycle driven by surging oil prices.
He added that a measured, single rate adjustment, clearly communicated by policymakers, could ultimately push 10-year yields lower.
On Stocktwits, retail sentiment for SPY and QQQ moved to “bearish” from “extremely bearish” a day earlier, reflecting cautious optimism heading into the Fed’s decision.
Intel (INTC) and SK Hynix (SKHY) shares rose over 3% in early premarket trade after reports emerged that SK Hynix is in talks with Intel about potentially manufacturing memory chips in the U.S. for the first time.
Separately, SK Hynix reportedly resolved an internal union dispute by agreeing to pay half of profit-sharing bonuses in cash, removing another source of uncertainty for the company.
Oracle (ORCL) remained on retail traders’ radar as investors looked for fresh catalysts around OpenAI funding and potential cloud opportunities in Japan.
Palantir (PLTR) is trending after longtime bull Dan Ives reiterated that the company could eventually reach a $1 trillion market capitalization, while UBS raised its price target to $250 from $220.
Space stocks including ASTS and SPCX attracted attention after the Pentagon officially confirmed the U.S. operates on-orbit space control weapons under its “Golden Dome” defense initiative.
ASTS also secured a U.S. patent protecting thermal-management technology for its giant satellite arrays, adding another catalyst for the stock.
SpaceX (SPCX) said Starship Flight 14 is targeting a September 22 launch, pending regulatory approval, with the mission aiming to reach orbit for the first time.
Cathie Wood said that successful Starship development could materially change how investors view SpaceX’s valuation, lending fresh momentum to space-sector stocks.
The Senate failed to advance the CLARITY Act, with the procedural vote falling short of the 60 votes needed, dealing a blow to Circle (CRCL), Coinbase (COIN), and BitMine Immersion (BMNR).
Coinbase CEO Brian Armstrong and Galaxy Digital CEO Mike Novogratz publicly criticized the outcome, while other industry figures said the failure could force companies to pursue alternative paths toward regulatory clarity.
Fannie Mae (FNMA) and Freddie Mac (FMCC) drew fresh attention after “Big Short” investor Michael Burry said the U.S. housing market is starting to “creak” and that housing prices may already be falling.
On the earnings front, ZenaTech (ZENA) and Lennar (LEN) are scheduled to report results today, giving investors additional data points to assess the broader economic picture.
