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

Dow Jones industrial average futures fell on Wednesday as investors looked ahead to the Federal Reserve’s meeting on Wednesday.

Dow futures fell 116 points, or 0.3%. S&P 500 futures were down 0.2%, while Nasdaq-100 futures were up 0.1%.

The Federal Reserve will announce at 2pm ET how much it will raise interest rates in its latest efforts to tame high inflation. Markets expect a rise of 25 basis points, or 0.25 percentage point, from the central bank. 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. The Fed’s announcement will be followed by comments from Chair Jerome Powell.

However, traders may come forward in anticipation of a more dovish tone from the Fed, or look for signs that there is a pause in the rally or even a pivot point soon.

Jeffrey Gundlach wrote on Twitter that the Fed’s message on Wednesday would “resist 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.

Earnings season continues, too. Peloton and Meta Platforms are scheduled to report quarterly results on Wednesday.

Snap shares fell more than 15% after the social media company posted disappointing quarterly revenue. The company’s average revenue per user, a key metric for Snap, also fell short of expectations. Meanwhile, AMD reported better-than-expected earnings and revenue but warned of a 10% drop in the first quarter.