U.S. stock index futures moved slightly higher on Tuesday night, following modest gains on Wall Street during the regular trading session. Investors remained cautious as they awaited the Federal Reserve’s upcoming interest rate decision while closely monitoring escalating tensions in the Middle East.
S&P 500 Futures rose 0.3% to 6,793.50 points, while Nasdaq 100 Futures gained 0.4% to 25,123.0 points. Dow Jones Futures also increased by 0.3% to 47,489.0 points in late trading.
Markets cautious ahead of Federal Reserve decision
During the regular session, major U.S. stock indexes closed slightly higher despite rising oil prices. The S&P 500 advanced 0.3%, the Dow Jones Industrial Average added 0.1%, and the Nasdaq Composite climbed 0.5%.
Market participants remained on the sidelines ahead of the Federal Reserve’s policy announcement scheduled for Wednesday. The central bank is widely expected to keep interest rates unchanged, but investors are focused on forward guidance.
Attention is now centered on the Fed’s policy statement and comments from Chair Jerome Powell, as traders look for signals on the future path of interest rates.
Inflation concerns remain amid rising oil prices
Although recent economic data has indicated some easing in inflation, the sharp increase in oil prices due to geopolitical tensions has complicated the outlook. Rising energy costs are fueling concerns about renewed inflationary pressures in the coming months.
Iran conflict continues to impact global markets
Oil prices eased slightly during Asian trading hours on Wednesday but remained near multi-year highs, with Brent crude holding above $100 per barrel.
Tensions escalated further after Iran confirmed that senior official Ali Larijani was killed in an Israeli strike, signaling a significant development in the conflict. Reports indicate that Iran has rejected calls for de-escalation and plans to continue its response.
The ongoing conflict has disrupted global oil supply routes, particularly through the Strait of Hormuz, a critical channel for energy shipments worldwide.
U.S. equities show resilience
Despite geopolitical risks and inflation concerns, U.S. equity markets have remained relatively resilient. Gains in technology stocks and expectations of stable monetary policy have helped support investor sentiment in the near term.
