Dow futures are dropping as traders await the latest rate hike decision from the Federal Reserve

Stock futures fell on Wednesday as investors awaited the latest policy decision from the Federal Reserve.

Futures linked to the Dow Jones Industrial Average fell 188 points, or about 0.6%. S&P 500 futures fell about 0.4%. Meanwhile, Nasdaq 100 futures fell 0.2%.

Corporate earnings season continued. peloton Shares rose more than 4% in premarket trading after the fitness equipment company said Net loss decreased year on year. advanced micro devices Shares gained more than 3% after the semiconductor company You reported outperforming fourth quarter earnings. while, pop Shares fell more than 15% after the social media company posted disappointing quarterly revenue.

The Fed will announce at 2pm ET how much it will raise interest rates in its latest effort to tame high inflation, with market participants anticipating a 25 basis point hike from the central bank. The Fed’s announcement will be followed by comments from Chair Jerome Powell.

Some signs of declining inflation in the broader economy have investors hoping for a more dovish tone from the Fed. On Tuesday, the labor cost index, a measure of wage increases, showed compensation rising 1% in the fourth quarter, less than the 1.1% estimate by the Dow Jones.

However, traders may advance looking for signs that there is a pause in the highs or even a pivot point coming soon.

Jeffrey Gundlach wrote on Twitter that the Fed’s message on Wednesday “will counter the pivotal narrative and therefore the current bond market pricing.” “It must be interesting.”

Wall Street is out of a solid trading session through the end of January. The Dow Jones finished Tuesday up nearly 369 points, up 1.09%. The S&P 500 rose 1.46% to its best January performance since 2019. The heavy Nasdaq Composite rose 1.67%, notching its best January performance in 22 years.