S&P futures showed minimal movement on Wednesday as traders geared up for a highly awaited monetary policy decision and an even more crucial policy outlook from the Federal Reserve. S&P 500 futures remained unchanged, whereas Nasdaq-100 futures experienced a slight decline.

Futures contracts associated with the Dow Jones Industrial Average experienced an increase of 14 points, reflecting a rise of 0.03%. Nvidia experienced a decline of over 1.3% in the premarket. Report indicating that tech companies in China have been prohibited from purchasing Nvidia’s chips. Market participants widely anticipate a reduction in interest rates by the Federal Reserve on Wednesday, a decision that may invigorate the U.S. economy in light of indications that the labor market is decelerating, even as inflation remains persistently above the central bank’s 2% objective.

Policymakers are set to provide additional clarity regarding their expectations for interest rates in the upcoming year through the highly scrutinized “dot plot” grid that accompanies their quarterly Summary of Economic Projections. Market participants will be attentive to any policy disagreements among Fed officials following two notable dissenting views expressed during the previous meeting in July. Market participants have assigned a 96% probability to a 25 basis point reduction in rates by the Fed, while the likelihood of a half point cut on Wednesday stands at a mere 4%. Paul McCulley, indicated  that “The Exchange” on Tuesday that a more cautious quarter-point rate cut appears to be the most probable scenario.

“Honestly, I find it challenging to articulate in the present situation without indicating that the labor market is causing me significant concern, and I doubt that’s the impression Chair Powell aims to convey — at least for the time being,” McCulley remarked. Equities are emerging from a subdued trading day, with the principal U.S. indices concluding with minimal variation.