US pre-open: Futures lower as traders continue to await FOMC decision

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Tuesday as investors continued to await the outcome of the Federal Reserve's meeting. As of 1300 GMT, Dow Jones futures were down 0.40%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.33% and 0.21% weaker, respectively.

The Dow closed 110.58 points lower on Monday as the blue-chip index registered its longest losing streak in over six years.

The Federal Open Markets Committee will kick off its two-day monetary policy meeting on Tuesday, with the central bank widely expected to cut its benchmark overnight interest rate by 25 basis points on Wednesday. Traders will also be locked in on comments from Fed chairman Jerome Powell as they hope to gain further insight into just what the central bank's next move may be.

Trade Nation's David Morrison said: "Investors are preparing themselves for tomorrow's rate announcement from the US Federal Reserve's FOMC. There's currently a 96% probability of a 25 basis point rate cut. So, investors will be paying more attention to the FOMC's quarterly Summary of Economic Projections which provides forecasts for GDP growth, Unemployment, inflation and the fed funds rate for 2025 and beyond."

On the macro front, November retail sales numbers will be released at 1330 GMT, while November industrial production and capacity utilisation figures will be out at 1415 GMT, and October business inventories and the NAHB's December housing market index will be published at 1500 GMT.

No major corporate earnings were slated for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com