NEW YORK (AP) — U.S. stocks are opening slightly higher as Wall Street waits to hear what the Federal Reserve will say about where interest rates may be heading. The S&P 500 was up 0.4% in early trading Wednesday. The Dow Jones Industrial Average was up 102 points, or 0.3%, and the Nasdaq composite was up 0.6%. The modest moves are a respite following weeks of sharp swings. Markets expect the Fed to announce no change to its main interest rate. They’ll be more focused on the economic forecasts the central bank will release after the meeting is over.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Wall Street inched a little higher Wednesday ahead of the Federal Reserve's latest decision on interest rates.
Futures for the S&P 500 rose 0.3% before the bell, while futures for the Nasdaq rose 0.4%. Futures for the Dow Jones Industrial Average ticked up 0.2%.
If the Fed leaves interest rates alone as expected Wednesday, the focus will turn to the U.S. central bank's forecasts for future rate cuts, inflation and the broader economy. For now, traders on Wall Street are largely expecting the Fed to deliver two or three cuts to rates by the end of 2025.
Uncertainty is widespread among global markets about what President Donald Trump’s trade war will do to the American economy and economies around the world. Trump’s barrage of announcements on tariffs and other policies have bred concerns that U.S. households and businesses could pull back on their spending, which would hurt the economy.
That complicates matters for the Federal Reserve. Cutting its main interest rate would make it easier for U.S. businesses and households to borrow, helping to boost the economy. But lower interest rates can also push inflation upward, and Americans shell-shocked by high prices have already begun bracing for even higher inflation because of tariffs.
U.S. markets have swung wildly — more often than not downward — on Trump's tariffs announcements. In the past month, the S&P 500 has lost 8.6%, while the technology-laden Nasdaq is down a whopping 12.7%. The Dow is down 6.8% since mid-February.
In early trading Wednesday, General Mills shares slid 4% after the cereal and snack maker missed Wall Street sales targets and lowered its full-year outlook. The company said it expects “macroeconomic uncertainty” to continue to impact consumers in the current quarter.
Chipmaker Intel fell 2.6% before the bell, following five straight daily gains that were fueled by the naming of a new CEO last week.
Elsewhere, in Europe at midday, France's CAC 40 rose 0.3% while the German DAX shed 0.3%. Britain's FTSE 100 fell 0.2%.
Japan reported that it logged a trade surplus in February, with exports rising more than 11% as manufacturers rushed to beat rising tariffs imposed by U.S. President Donald Trump.
The Japanese central bank opted to keep its benchmark rate unchanged, as expected. The Fed also is expected to hold rates steady.
Japan's benchmark Nikkei 225 edged down 0.3% to finish at 37,751.88 after the central bank decided to keep the benchmark interest rate unchanged at 0.5%. The U.S. Federal Reserve is also expected to keep rates steady.
Bank of Japan Gov. Kazuo Ueda reiterated that the Japanese economy is recovering moderately, though risks remain. He declined comment on Trump's policies. Ueda said fluctuations in exchange rates and consumer prices required monitoring.
In currency trading, the U.S. dollar rose to 149.66 Japanese yen from 149.28 yen. The euro cost $1.0904, down from $1.0944.
Hong Kong's Hang Seng added 0.1% to 24,771.14, while the Shanghai Composite declined 0.1% to 3,426.43.
Australia’s S&P/ASX 200 declined 0.4% to 7,828.30. South Korea’s Kospi gained 0.6% to 2,628.62.
Yuri Kageyama And Matt Ott, The Associated Press
