US stock futures edge higher as markets await Fed’s first hike in three years

  • US stock futures edged higher before the latest Federal Reserve policy decision.
  • Markets expected the first rate hike in around three years.
  • Alphabet, Microsoft, Oracle and Amazon fell as oil prices and Treasury yields rose.

US stock futures rose modestly as investors awaited the latest Federal Reserve policy decision, with markets broadly expecting the central bank to deliver its first rate hike in around three years. Traders are focused on whether policymakers signal another increase later this year, particularly in October or December. In Tuesday’s regular session, the Dow fell 0.3%, the S&P 500 declined 0.45% and the Nasdaq Composite lost 0.78% as surging oil prices and higher Treasury yields pressured equities. AI hyperscalers, large cloud-computing companies, were especially weak because higher borrowing costs can weigh on capital-intensive expansion, with Alphabet down 1.3%, Microsoft 1.6%, Oracle 3.1% and Amazon 2%. Investors also continued assessing safety concerns linked to AI development. Nvidia CEO Jensen Huang argued that additional AI security regulations are unnecessary, saying market forces will push companies to innovate safely.

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