US stock markets were set for a subdued open on Tuesday ahead of the Federal Reserve’s two-day policy meeting.
Dow Jones Industrial Average futures were up 22 points, or 0.1%. S&P 500 futures were largely flat, as were Nasdaq 100 futures.
The yield on the 10-year US Treasury note stood at 4.319%, down slightly from the previous day’s highs of around 4.35%. While the Fed is widely expected to hold rates steady at its policy decision on Wednesday, investors in recent days have been pricing in higher rates for longer into 2024.
“The market isn’t pricing in the likelihood of the Fed starting to taper until June 2024, whereas we’re looking for four to five rate cuts next year,” said Dave Sekera, chief US market strategist at Morningstar Research Services.
Elsewhere, attention will be on the start of trading on Tuesday for delivery company Instacart after its IPO priced at $30 a share, the top end of its expected range.
