US pre-open: Futures point slightly higher ahead of Fed decision

(Sharecast News) - Wall Street's main market gauges looked primed for a slightly higher start on Wednesday, as traders sat on their hands ahead of the Federal Reserve's policy announcement at 1900 BST. America's central bank was widely expected to stand pat on interest rates, leaving them at 5.25-5.50%, and to leave the door open to another 25 basis point interest rate hike before the year was out.

Indeed, economists at BoA believed that the median projection for rates in 2024 submitted by policymakers would be bumped up by 25bp to 4.875%.

As of 1215 BST, Dow Jones mini futures were rising by 74.0 points to 34,891.0, alongside a 8.50 point gain for the S&P 500 mini to 4,498.50.

In parallel, the yield on the benchmark 10-year U.S. Treasury note was little changed at 4.344%.

BoA strategist Savita Subramanian bumped up her year-end 2023 target for the S&P from 4,300 points to 4,600.

Artificial intelligence, automation and increased labour efficiency were all set to boost productivity in the U.S., she said.

Shares of Coty were being called 5% higher after the cosmetics manufacturer raised its guidance for growth in like-for-like sales during fiscal 2024 from 8-10% to 10-12%.

General Mills was also on the up after posting first quarter adjusted earnings per share of $1.09 (consensus: $1.08).

No major economic reports were scheduled for release in the U.S. on Wednesday.