Investing.com - U.S. stock futures pointed to a flat open on Wednesday morning, as investors looked ahead to minutes of the Federal Reserve’s latest policy meeting for further hints on the timing of the next U.S. rate hike.
The blue-chip Dow futures rose 4 points, or less than 0.1%, by 6:55AM ET (10:55GMT), the S&P 500 futures dropped 1 point, while the tech-heavy Nasdaq 100 futures tacked on 6 points.
U.S. equities closed higher for the fourth session in a row on Tuesday, as hope around the Trump trade was renewed among investors.
The Fed will release minutes of its most recent policy meeting at 2:00PM ET (18:00GMT), as traders seek further insight into the likelihood of higher interest rates in the months ahead. The publication is also expected to provide some details on the Fed's discussions about shrinking its massive $4.5 trillion balance sheet.
The U.S. central bank left interest rates unchanged following its meeting on May 3 and gave a positive assessment of the U.S. economy, suggesting it was still on track for two more rate hikes this year.
But a recent run of disappointing U.S. economic data combined with signs of deepening political turmoil surrounding the Trump administration raised doubts over the Fed's ability to raise rates as much as it would like before the end of the year.
Futures traders are currently pricing in around an 80% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool, while odds for a second rate hike by December were at about 40%.
Besides the Fed, Wednesday's calendar also features existing home sales and home prices data, both of which will take on extra importance after Tuesday's report of slumping April new home sales.
Also on the agenda, Mick Mulvaney, director of the Office of Management and Budget, is scheduled to appear before the House Budget Committee at 9:30AM ET. Treasury Secretary Steven Mnuchin appears before the House Ways and Means Committee at 2PM ET.
Meanwhile, President Donald Trump continues his overseas trip, arriving in Italy, where he met with Pope Francis. The president is scheduled to meet with NATO members and attend the G-7 summit starting Friday.
Among active pre-market movers, Lowe’s (NYSE:LOW) shares sank almost 8% ahead of the opening bell after the No. 2 U.S. home improvement retailer reported lower-than-expected quarterly comparable sales.
In other markets, European stocks were mostly lower. Earlier, in Asia, most markets ended in negative territory, after Moody's downgraded China's credit ratings, citing expectations that the financial strength of the world's second-biggest economy would erode in the coming years as growth slows and debt continues to rise.
Elsewhere, oil prices posted solid gains as investors looked ahead to the Energy Department's weekly supply report at 10:30AM ET and as OPEC prepared to meet in Vienna to decide whether to extend their current production agreement.