U.S. stock futures pointed to a second day of declines on Wednesday, ahead of the release of the Federal Reserve’s plan to reverse the size of its $9 trillion balance sheet.
What’s happening
- Futures on the Dow Jones Industrial Average YM00,
-0.68% fell 133 points, or 0.4% to 34417. - Futures on the S&P 500 ES00,
-0.96% dropped 20.5 points, or 0.5% to 4500. - Futures on the Nasdaq 100 NQ00,
-1.55% decreased 100.5 points, or 0.7% to 14728.
On Tuesday, the Dow Jones Industrial Average DJIA,
What’s driving markets
Expectations the minutes will reveal its plan to reduce the balance sheet were heightened by a speech on Tuesday from Lael Brainard, the Fed governor who’s nominated to be vice chair. The 10-year yield TMUBMUSD10Y,
The minutes of the Federal Open Market Committee’s last meeting, due for release at 2 p.m., may show quantitative tightening may start as early as May.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the minutes will show that Fed members are more concerned about inflation now than in January. “We would be surprised if anything in the minutes persuades investors to dial back their expectations,” he adds.
The U.S. and allies also are expected to tighten up sanctions on Russia, including a U.S. ban on new investments, the White House has said.
