US stock futures fell Wednesday morning as traders digested inflation data, braced for news from the Iran war and awaited the Federal Reserve’s decision on interest rates, set to be announced at 2 p.m. ET.
Dow, S&P 500 and Nasdaq 100 futures erased earlier gains after a Bloomberg News report, citing Iran state TV, that the South Pars natural gas field was hit by US and Israeli strikes.
Stock futures remained under pressure after new data showed wholesale inflation rose more than expected in February. Dow futures were down 128 points, or 0.27%. S&P 500 and Nasdaq 100 futures each also fell 0.27%.
Traders had already expected the Fed to hold rates steady this month, but the Iran war has clouded the outlook for future rate cuts. Traders are pricing in just one rate cut this year, to take place in December, according to CME FedWatch.
Wall Street’s focus will be on the Fed’s quarterly Summary of Economic Projections, as well as remarks from Fed Chair Jerome Powell.
Despite recent fluctuations in oil prices, stocks are coming off two days in the green. After sliding 1.6% last week, the S&P 500 is up 1.27% so far this week.
Traders continue to monitor headlines about the effective closure of the Strait of Hormuz. Oil prices were mixed Wednesday morning: Brent crude, the global benchmark, rose 2.2%, to $105.73 per barrel. US crude oil egded lower to $95.50 per barrel.
