Dow, S&P 500, Nasdaq futures rise with Fed rate decision in focus

US stocks edged higher in premarket trading on Wednesday, September 16, as investors awaited the Federal Reserve’s interest-rate decision, with markets bracing for what could mark the start of a fresh rate-hiking cycle.Futures tied to the Dow Jones Industrial Average rose about 0.2%, while S&P 500 futures gained 0.2% and Nasdaq-100 futures advanced 0.4%.The gains came after Wall Street ended lower on Tuesday, pressured by a sell-off in government bonds that pushed the benchmark 10-year Treasury yield above 5%, its highest level since the financial crisis.Investors were also monitoring oil prices, which remained above $100 a barrel despite easing from recent highs. Brent crude futures fell 0.7% to $107.92 a barrel, while US West Texas Intermediate futures were down 1.2% at $104.55.Fed decision in focusThe Federal Reserve is due to announce its interest-rate decision later Wednesday, followed by the release of its latest economic projections, including the so-called dot plot. Fed Chairman Kevin Warsh is also scheduled to hold a press conference.Markets were pricing in a 25-basis-point rate hike, with the CME FedWatch tool showing a 92.5% probability. The current federal funds target range is 3.5%-3.75%.Traders were also pricing in a 45% chance of another quarter-point hike at the Fed’s October meeting and a 30% probability of a hike in December.The rate decision comes as inflation remains above the Fed’s 2% target. Consumer prices rose 3.4% year-on-year in August, easing from a recent high of 4.2% in May. On a monthly basis, the Consumer Price Index increased 0.4%, in line with expectations, while core CPI rose 0.3%, slightly more than expected.What if the Federal Reserve doesn’t hike rates?Bitcoin, crypto stocks slideCryptocurrencies extended their losses on Wednesday after the US Senate failed to advance a key procedural vote on the Clarity Act, raising doubts over the prospects of the digital-asset regulatory framework passing this year.Bitcoin fell about 2% to around $75,000, while other major cryptocurrencies also declined. Crypto-related stocks including Robinhood and Coinbase came under pressure, although their losses were smaller than during Tuesday’s sell-off.European stocks rise, Asia mixedEuropean stocks were broadly higher in early trading, with the Stoxx 600 up about 0.4%. The FTSE 100 also gained 0.4%.Asian markets were mixed. Japan’s Nikkei 225 fell 0.34%, while the Topix gained 0.7%. South Korea’s Kospi edged up 0.12%, while the Kosdaq declined 1.05%.Australia’s S&P/ASX 200 rose 0.24%, while Hong Kong’s Hang Seng fell 0.18% and mainland China’s CSI 300 declined 0.42%.US FED Meeting Live Updates: Countdown begins for Kevin Warsh-led FOMC’s interest rate decision today