Stock futures were slightly lower on Wednesday as Wall Street braced for the Federal Reserve’s latest decision on interest rates after a terrible month.
Futures linked to the Dow Jones Industrial Average were down 66 points, or 0.19%. S&P 500 futures and Nasdaq 100 futures were each down about 0.2%.
In after-hours trading, restaurant operator Yum China Holdings plunged 9.2% after missing third-quarter revenue estimates, while shares of Tinder parent Match Group fell 6.9% on disappointing fourth-quarter revenue guidance. Advanced Micro Devices was just above flat after beating on earnings and revenue, reversing earlier steep declines on disappointing fourth-quarter revenue estimates.
The market’s moves come as traders turn their attention to Washington for the Fed’s latest policy announcement. Central bankers are widely expected to keep interest rates on hold, with fed funds futures pricing in a more than 99% probability that rates will remain at current levels, according to the CME FedWatch tool.
The decision is due to be released at 2pm ET, followed by a press conference with Chairman Jerome Powell at 2:30pm ET.
“They’re done with respect to the fed funds rate. They’re certainly not done with respect to their balance sheet. “It’s probably going to be a really boring statement … but behind the scenes, [quantitative tightening] is continuing. That’s taking over from the rate hikes in terms of tightening financial conditions.”
Stocks have rallied so far this week, regaining some footing after a dismal October that saw each of the three major indexes post their third consecutive month of losses.
The Dow and S&P 500 ended the month down 1.4% and 2.2% respectively, marking the first three-month losing streak for both indices since March 2020. The Nasdaq Composite, meanwhile, fell 2.8% in October.
Although November is historically a strong month for markets, investors are keeping an eye out for a peak in bond yields. Earlier this month, the benchmark 10-year US Treasury yield crossed the key 5% level for the first time since 2007, raising concerns about the impact of higher-for-longer interest rates.
