US pre-open: Futures tick up with Fed rate call in focus

16th Sep 2026 10:50

(Sharecast News) - Wall Street futures were in the green ahead of the opening bell on Wednesday as traders awaited a key Federal Reserve rate decision that could mark the start of a fresh tightening phase over the coming months.

As of 1230 BST, Dow Jones futures were up 0.22%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.24% and 0.45% firmer, respectively.

The Dow closed 328.09 points lower on Tuesday, extending losses recorded in the previous session, as traders awaited this week's Federal Reserve decision and another jump in Treasury yields weighed on sentiment.

However, futures traded slightly higher early on Wednesday as markets began to price in a quarter‑point hike with roughly 92% probability, according to CME's FedWatch tool, with additional increases in October and December still seen as possible. The Fed will announce its decision at 1900 BST, which comes against pressure from the White House to keep rates unchanged.

Energy markets also remained in focus, with US diesel hitting $6 a gallon for the first time amid supply strains linked to the Ukraine and Iran conflicts. Crude prices also held above $100 a barrel, while Treasury yields remained elevated on expectations of persistent inflation, with the benchmark 10‑year note slightly below 5% and the 30‑year at 5.347%.

Elsewhere on the macro front, US mortgage applications fell 4.1% in the second week of September, according to the Mortgage Bankers Association, extending the 2.7% decline seen previously and marking the sharpest drop in seven weeks. The fall came as the 30‑year fixed mortgage rate jumped to a 16‑month high of 6.97%. Applications to refinance a mortgage slid 9%, while applications to purchase a home edged 1% lower, reflecting softer demand against a backdrop of rising borrowing costs and uncertainty over future property disposals.

Still to come, August's import and export price index will be released at 1330 BST, as will last month's retail sales figures, while July's business inventories data and the NAHB's September housing market index will follow at 1500 BST.

In the corporate space, Lennar will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com