Stock futures rise slightly ahead of the Federal Reserve’s expected interest rate hike

Stock futures rose slightly Wednesday as traders looked ahead to a potential interest rate hike announcement from the Federal Reserve later in the day.

Dow Jones Industrial Average futures gained 60 points, or 0.2%. S&P 500 futures also climbed 0.2%, and Nasdaq 100 futures traded just above the flatline.

Investors expect that the central bank will deliver its third consecutive 0.75 percentage point rate hike to tame high inflation. A higher-than-expected consumer price index reading in August and hawkish comments on rate hikes from Fed leaders have weighed on stocks, with more pressure likely ahead as the central bank continues to fight inflation.

“We’ll never truly know whether the equity market lows are in for the year without successfully testing the June lows,” said John Lynch, chief investment officer at Comerica Wealth Management in a Tuesday note. “To be sure, the recent technical weakness in stock prices must now contend with the resolve of monetary policy makers in their fight against inflation.”

Investors will also be watching for earnings from Lennar, KB Homes, General Mills and Steelcase Wednesday. Existing home sales will also be released Wednesday.

Treasury yields dipped Wednesday after reaching levels not seen in more than a decade. The 2-year rate, which touched its highest level since 2007 in the previous session, was last down about 2 basis points at 3.948%. The benchmark 10-year yield slipped to 3.54% after hitting its highest level since 2011.

Stocks fell Tuesday, the first day of the Federal Open Market Committee’s meeting. The Dow shed 1.01%. The S&P 500 and the Nasdaq Composite fell 1.13% and 0.95%, respectively.