A man walks near the New York Stock Exchange (NYSE) on Wall Street on August 31, 2020 in New York City.
Angela Weiss | AFP | Getty Images
US stock futures barely moved early Wednesday as investors await the outcome of the Federal Reserve's two-day meeting and Fed Chairman Jerome Powell's comments later that day.
Dow Jones Industrial Average futures pointed to an opening profit of around 25 points. Both S&P 500 futures and Nasdaq 100 futures traded close to evenly.
On Wednesday, the Fed will release new economic and interest rate forecasts that could suggest that Fed officials expect a rate hike by or even before 2023. The central bank is expected to recognize stronger growth, which should bring the Fed's loose policies under control, especially given the new $ 1.9 trillion stimulus spending.
Investors will also hear from Fed Chairman Powell, who is likely to shake the stock and bond markets with his comment, although he is unlikely to offer details.
"There is this assumption (Powells) that will be cautious tomorrow. He has a hard time not being cautious about another round of spending. They are definitely afraid to scare the market. They are afraid of disrupting the recovery," said Peter Boockvar. The Bleakley Advisory Group's chief investment officer told CNBC.
Government bond yields rose slightly on Tuesday on the first day of the Fed's meeting. The 10-year government bond yield remains above 1.6% after hitting its highest level in a year last week.
Rising interest rates have been an overhang for stocks in the past few weeks, especially for the tech sector. The surge in yields has forced value stocks to shift away from growth, pushing the Dow Jones Industrial Average and S&P 500 near record highs.
A heavy roll-out of vaccines and the relaxation of government lockdowns have also spurred inventory re-opening.
On Tuesday, the Dow lost nearly 130 points, hurt by a nearly 4% decline in Boeing stock. The 30-stock average posted a seven-day profit streak. The S&P 500 fell 0.16% after hitting a record high during the trading session.
The Nasdaq Composite was the relative outperformer, up 0.09% as Facebook, Amazon, Apple, Netflix, and Google's parent Alphabet all saw gains. The tech-intensive index rose more than 1% at one point in the session.
– CNBC's Patti Domm contributed to this report.