US futures slip with Fed rates decision on deck

US stocks fell before the bell Wednesday after logging a third straight losing month as investors got ready for the Federal Reserve’s latest policy decision.

S&P 500 (^GSPC) futures were about 0.5% lower, while Dow Jones Industrial Average (^DJI) futures slid around 0.4% after both indexes closed Tuesday’s session higher. Contracts on the tech-heavy Nasdaq 100 (^NDX) shed roughly 0.5%.

Front of mind for Wall Street is the Fed’s decision on interest rates at the end of its meeting Wednesday afternoon, when policymakers are widely expected to hold rates steady while keeping the option to raise rates further if needed.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Investors will scrutinize the choice of words in the statement as well as Chair Jerome Powell’s comments for clues to the Fed’s thinking on the future path of rates, given officials have stressed they will tread carefully to avoid hitting the US economy as they strive to cool inflation.

Treasury yields edged lower, with the 10-year yield (^TNX) trading around 4.91% ahead of the Fed decision and the US Treasury’s quarterly refunding update, also due later Wednesday. Stock investors are watching the announcement more closely than usual, given how the August update contributed to the recent run-up in yields.

More financial reports rolled in, in a season that so far has failed to give the hoped-for impetus to stocks. AMD’s shares slipped after the chip designer’s results beat estimates on the top and bottom line, but fell short on its fourth-quarter guidance. Kraft Heinz missed analysts’ estimates for third-quarter sales, while CVS profit topped estimates amid a strong performance for its pharmacy business.

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