US Stocks Set to Extend Gains

Futures tracking US equities erased gains to hover below the flatline on Wednesday after fresh data indicated sharp traction in domestic producer prices, adding to concerns of higher rates by the Federal Reserve. The three main averages were below the flatline. Both headline and core producer inflation was sharply above expectation in February, reflecting traction before the energy shock in the Persian Gulf triggered a surge in energy costs this month. Pro-inflationary concerns to inflation are expected to be reflected in economic projections by FOMC members to be released today together with an expected rate hold by the Federal Reserve. The energy crunch was magnified on reports that Isreal hit Iranian natural gas processing plants. Tech and financial companies were lower pre-market as yields rose across the curve, trimming their outperformances in the last session, especially in the asset management sector due to the opaque view on private credit.

US futures moved higher on Wednesday, with contracts on the S&P 500 rising 0.4%, the Nasdaq 100 gaining 0.5%, and Dow Jones futures climbing 200 points. The advance marked a third consecutive session of gains as investors braced for the Fed’s monetary policy decision later in the day. While no change in the fed funds rate is expected, markets are closely watching updated economic projections and remarks from Chair Powell for clues on how tensions with Iran could shape the policy outlook. Meanwhile, a decline in oil prices provided some relief to investors. Optimism was also supported by developments in artificial intelligence, after Nvidia's CEO highlighted the fast-emerging OpenClaw project as a significant step forward in human–AI interaction. Shares of Nvidia rose about 1% in premarket trading. Other megacap stocks were also higher, including Apple (+0.4%), Alphabet (+0.5%), Microsoft (+0.4%), Amazon (+0.4%), Meta (+0.5%) and Broadcom (+0.5%).

US stock futures were little changed on Wednesday as investors braced for the latest Federal Reserve policy decision. The central bank is widely expected to leave interest rates unchanged, while traders look for guidance from Fed Chair Jerome Powell on how surging oil prices could influence the policy outlook. Oil prices continued to rise amid persistent Middle East hostilities, while US allies pushed back against President Donald Trump’s call to help secure shipping through the Strait of Hormuz. In regular trading on Tuesday, the Dow added 0.1%, the S&P 500 gained 0.25%, and the Nasdaq Composite advanced 0.47%. Eight of the 11 S&P sectors closed higher, led by energy, consumer discretionary, and communication services. In extended trading, Lululemon and Oklo declined more than 1% and 2%, respectively, following disappointing quarterly results, while DocuSign rose 1.5% on stronger-than-expected earnings.