1. Futures subdued

U.S. stock futures hovered around the flatline on Wednesday, as investors prepared for the hotly-anticipated Federal Reserve interest rate decision.

By 03:30 ET (07:30 GMT), the Dow futures contract and S&P 500 and Nasdaq 100 futures were mostly unchanged, while Nasdaq 100 futures inched up by 19 points, or 0.1%.

The main averages on Wall Street sank in the prior session, while the U.S. dollar slipped to fresh 52-week lows — signs of caution ahead of the Fed’s impending announcement.

In individual stocks, Nvidia (NASDAQ:NVDA) shares declined on a news report which suggested that demand for the semiconductor giant’s new AI chip in China has been weak. On the other hand, Oracle’s (NYSE:ORCL) stock rose after the software group was rumored to be part of an investment consortium which, under a framework deal between the U.S. and China, will keep the U.S. arm of short-form video app TikTok in operation.

2. Fed decision day

The Fed is widely expected to slash interest rates at the conclusion of its latest two-day policy gathering, although the size of the possible drawdown and commentary around the move remain a source of debate.

Markets are all but certain the central bank will cut borrowing costs by at least 25 basis points from the current target range of 4.25% to 4.5%, while there is also a slim chance of a deeper, half-percentage point reduction.

Underpinning these estimates have been signs of a weakening U.S. labor market, which are seen overshadowing simultaneous indications of sticky inflation. In theory, a rate cut can help spur investment and hiring, albeit at the risk of driving up prices.

How the rate-setting Federal Open Market Committee, and, more specifically, Chair Jerome Powell, view the trajectory of the job market and inflation will be in sharp focus. Policymakers now face pressures to both sides of its dual mandate: maximizing employment while maintaining price stability.

Along with the more qualitative statements from the FOMC and Powell, the Fed will release an updated look at its members’ rate projections for the months ahead — a closely-monitored chart known as the “dot plot.”

“Inflation remains above target and tariffs are likely to keep it elevated in the near term, but the balance of risks are tilted towards the need for more support for the economy,” analysts at ING said in a note.

3. U.K. inflation stable in August

U.K. inflation held steady in August, but was almost twice the Bank of England’s target level, suggesting the U.K. central bank will keep monetary policy unchanged at its own policy meeting on Thursday.

Annual consumer price inflation rose 3.8% in August, unchanged from the July release, but still considerably above the Bank of England’s 2.0% medium-term target.

The July 2025 figure was the highest recorded since January 2024, when the rate was 4.0%.

The monthly rate rose 0.3%, rising faster than the 0.1% monthly growth seen in the prior month.

Core CPI, which excludes volatile energy and food prices, rose 0.3% on a monthly basis and 3.6% annually, a slight drop from the 3.8% growth seen in July.

4. General Mills to report

On the earnings front, General Mills is due to report before the opening bell on Wall Street.

Investors will be keeping tabs on how the packaged foods firm quarterly sales and expectations for future demand.

Concerns have swirled around whether consumers are reining in expenditures during a time of broader tariff-fueled economic uncertainty. A gauge of consumer sentiment last week from the University of Michigan ticked lower, with sweeping U.S. levies cited as a key driver of households’ fears over the state of their pocketbooks.

General Mills is anticipated to report fiscal first-quarter adjusted earnings per share of $0.82 on net sales of $4.52 billion, according to Bloomberg consensus estimates. Shares of the owner of brands like Chex breakfast cereal and Nature Valley granola bars have fallen by 22% so far this year.

5. Gold ticks lower

Gold prices edged down from record highs ahead of the release of the Fed’s rate decision and policy outlook.

Spot gold was last down 0.6% at $3,667.61 an ounce by 03:30 ET, after hitting an all-time peak of $3,702.95 on Tuesday. U.S. gold futures for December slipped 0.6% to $3,704.20/oz.

Meanwhile, oil prices slipped marginally lower, handing back some of the previous session’s gains on heightened concerns over disruptions in Russian production. The benchmarks settled more than 1% higher on Tuesday, climbing to two-week highs, due partially to worries that Russian supplies may be hit following Ukrainian drone attacks on critical export ports and refineries.