Investing.com - U.S. stock markets pointed to a lower open on Wednesday, as caution ahead of the Federal Reserve’s policy statement due later in the day and further weakness in oil prices dampened demand for riskier assets.
The blue-chip Dow futures shed 75 points, or 0.45%, by 10:30GMT, or 5:30AM ET, the S&P 500 futures slumped 13 points, or 0.65%, while the tech-heavy Nasdaq 100 futures dropped 42 points, or 0.99%.
The Federal Reserve is not expected to take action on interest rates at the conclusion of its two day policy meeting at 19:00GMT, or 2:00PM ET, on Wednesday, but it will be watched for any change in tone about the economy or future rate hikes.
Many in the market anticipate the pace of future increases to be gradual due to the recent turmoil in global financial markets, as well as concerns over tepid growth overseas and indications that U.S. economic growth stalled in the fourth quarter.
Meanwhile, oil prices headed south again as worries over a global supply glut overshadowed speculation that OPEC and non-OPEC producers may be edging closer to a deal to cut production.
The drop in oil prices, which are down more than 75% from their 2014 high, has fueled mounting risk aversion, sending global equities sharply lower since the start of the year.
China stock markets were under pressure again on Wednesday, with the Shanghai Composite ending down 0.5% to close at a new 13-month low. The benchmark is down almost 23% month-to-date.
Elsewhere, European equities edged lower as investors kept a wary eye on oil prices while awaiting the outcome of the Federal Reserve meeting later in the day.
In pre-market news, Apple (O:AAPL) was down 3% ahead of the bell after the company late Tuesday said iPhone sales grew at the slowest pace since the handset’s introduction in 2007.
The earnings season continues at full speed on Wednesday. Boeing (N:BA), United Technologies (N:UTX) and Biogen (O:BIIB) are slated to report ahead of the opening bell, while Facebook (O:FB), eBay Inc (O:EBAY) and Qualcomm (O:QCOM) are due after the close.
On the data front, the U.S. is release data on new home sales at 15:00GMT, or 10:00AM ET, while the U.S. Energy Information Administration will release its weekly report on oil supplies at 15:30GMT, or 10:30AM ET.