US Stock Futures Rise as Oil Prices Drop Ahead of Fed Rate Decision
US stock index futures rose on Wednesday, pointing to a higher open for major indices like the S&P 500 and Nasdaq. The rebound came after two days of losses that pushed the S&P 500 to its lowest close in over a month. Crude oil prices fell nearly 2% following an unexpected rise in US crude inventories, which offset earlier gains from supply concerns linked to Houthi strikes on Saudi Arabia. Investors were closely watching for the Federal Reserve's interest rate decision later that day. The CME FedWatch tool indicated a high probability of another 0.25 percentage point hike. On Tuesday, US equities had extended losses as Treasury yields climbed and oil prices rose, with all three major indices finishing in negative territory. The rise in bond yields raised concerns about equity valuations, particularly if the yield on 10-year Treasuries reached a psychological threshold of 5%. Market analysts noted that while this level could signal caution among investors, it does not guarantee an immediate market correction.
Topics: Federal Reserve interest rates oil prices stock market