A trader works on the floor of the New York Stock Exchange (NYSE) in New York, March 30, 2022.
Brendan McDermid | Reuters
Futures edged higher in overnight trading Tuesday as investors awaited the latest details on the Federal Reserve’s tightening of policy.
Minutes of the Fed’s Tuesday meeting are expected to be released Wednesday afternoon. Investors are bracing for new details about the Fed’s plan to reduce its balance sheet.
Dow Jones Industrial Average futures rose about 30 points, or 0.1%. S&P 500 futures gained 0.1% and Nasdaq 100 futures gained 0.2%.
The moves in the futures contract come after the average prices of the three major stocks all fell in regular trading Tuesday. The Dow fell about 280 points, or 0.8%. The S&P 500 lost 1.3% and the Nasdaq Composite dropped 2.3%.
Stocks fell on Tuesday as Fed Governor Lael Brainard pointed to support for higher interest rates and said the central bank’s balance sheet could begin to shrink rapidly in May.
That’s paramount, Brainard said during the Fed’s webinar in Minneapolis. Brainard has been nominated to be vice chair of the Federal Open Market Committee.
San Francisco Fed President Mary Daly is also committed an upcoming rate hike while sharing inflation concerns.
“I understand that inflation is just as harmful as no jobs,” Daly said.
