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(Sharecast News) - Major indices were in the red ahead early on Wednesday as market participants braced for the outcome of the Federal Reserve's two-day policy meeting.
As of 1510 GMT, the Dow Jones Industrial Average was down 0.03% softer at 47,546.04, while the S&P 500 shed 0.05% to 6,837.02 and the Nasdaq Composite came out of the gate 0.25% weaker at 23,517.20.
The Dow opened 14.25 points lower on Wednesday, extending losses recorded in the previous session as Nvidia weighed on markets after Donald Trump approved H200 chip sales to China as part of a deal that will see the US government receive a 25% cut.
Early on Wednesday, investor attention remained firmly on the Federal Reserve's upcoming policy decision, due at 1900 GMT, with markets betting the central bank will lower its key overnight lending rate by another quarter point at its final meeting for the year, repeating moves made in September and October.
According to CME's FedWatch tool, traders now see a roughly 90% chance of the Fed delivering its third-straight interest rate cut, up from less than 67% a month ago.
Market participants will also be looking to gauge further insight into FOMC members' sentiment from the post-meeting statement and chairman Jerome Powell's highly anticipated news conference.
Elsewhere on the macro front, mortgage applications rose by 4.8% week-on-week in the seven days ended 5 December, according to the Mortgage Bankers Association of America, rebounding from a three-month low. Applications to refinance a home loan surged 14.3% on the prior week, while applications to purchase a home declined 2.4%. On an annualised basis, refinance applications were 88% higher and purchase aplications increased 19%. Last week's reading came as the Federal Housing Administration's 30-year fixed-rate fell to 6.08%, the lowest level since September 2024, and the average rate for 30-year fixed-rate mortgages with conforming loan balances edged up from 6.32% to 6.33%.
In the corporate space, Oracle and Adobe will both report their latest quarterly results after the close.
Reporting by Iain Gilbert at Sharecast.com
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