Dow Futures are positioned slightly above the neutral mark, as market participants await the highly anticipated announcement regarding interest rates from the Federal Reserve. Analysts expect that the U.S. central bank will implement a “hawkish cut,” reducing rates while simultaneously limiting the scope for future reductions. Rate markets continue to anticipate further easing in 2026, as President Donald Trump, a longstanding advocate for rapid reductions in borrowing costs, is reportedly preparing to conduct a final series of interviews with candidates for the position of new Fed Chair. On the earnings front, the artificial intelligence strategies of cloud-computing giant Oracle will be closely examined when it reports after the closing bell.

Dow futures indicated a modest increase on Wednesday, as investors prepared for the highly awaited — and potentially contentious — Federal Reserve rate decision. As of 02:52, the Dow futures contract exhibited minimal movement, whereas S&P 500 futures and Nasdaq 100 futures recorded a slight increase of 0.1%. The primary indices exhibited a mixed performance in the previous session, as considerable focus centered on the commencement of the Federal Reserve’s two-day policy meeting. On Tuesday, both the blue-chip Dow Jones Industrial Average and the benchmark S&P 500 experienced declines, whereas the tech-heavy Nasdaq Composite recorded a modest increase of 0.1%. Partially influencing sentiment was a slight uptick in U.S. job openings in October, though hiring continued to be lackluster and resignations hovered near their lowest point in five years — all indicative of pervasive economic uncertainty that some analysts have posited may be associated with extensive U.S. tariffs.

The report highlighted expectations that the Fed is poised to reduce interest rates at the end of its meeting on Wednesday, while simultaneously presenting a more hawkish perspective for the upcoming months. The probabilities of a quarter-point reduction in borrowing costs, as indicated, are currently estimated at approximately 88%. In theory, reducing rates – which the Fed has already implemented in September and October, lowering its target range to 3.75% to 4% – can stimulate investment and employment, though this comes with the potential risk of rekindling inflationary pressures. While markets exhibit considerable confidence in an impending rate cut, media reports indicate that policymakers may be unusually divided regarding this decision. Concerns over persistent price increases and a notable lack of new economic data, attributed to an unprecedented government shutdown, have been cited as contributing factors. A new summary of Federal Reserve members’ economic projections is set to be released. In an effort to balance the competing perspectives within the policy debate, Fed Chair Jerome Powell is expected to endorse a drawdown this month, subsequently indicating in his post-meeting news conference that any further easing will face significant hurdles. Nonetheless, setting this elevated standard could prove challenging. By January, officials will have the opportunity to analyze more current employment and inflation data, and it remains uncertain what policy direction these figures may endorse.

In the meantime, President Donald Trump is reportedly set to commence the final series of interviews for the next Federal Reserve Chair in the upcoming days. According to senior administration officials, reports says that Trump and several of his aides are set to interview former Fed Governor Kevin Warsh on Wednesday, with meetings with additional candidates planned shortly thereafter. Kevin Hassett, the White House economic adviser, has been frequently identified in reports as the leading candidate to succeed Powell when his tenure at the Federal Reserve concludes next year. Hassett, a close ally of Trump, has consistently urged the Federal Reserve and Powell to implement aggressive and swift reductions in interest rates to stimulate economic growth. Some economists have suggested that Hassett might support rapid easing; however, given that he would hold only one vote in the 12-member Federal Open Market Committee, his impact could be constrained. However, analysts highlighted in a note that rates markets have incorporated “so much easing” in their expectations, even in light of projections for a so-called “hawkish cut” from the Fed today. “Presumably, this is the Kevin Hassett effect, where his arrival at the Fed in February can throw a dovish cloak over the FOMC outlook,” stated analysts.

Oracle is poised to take center stage in the earnings calendar on Wednesday, as analysts eagerly anticipate further insights into the cloud computing giant’s aspirations in artificial intelligence. Driven by a collaboration with OpenAI, the creator of ChatGPT, Oracle has redefined its position this year, evolving from a lesser competitor in the cloud sector to a crucial supplier of the on-demand computing resources necessary to support AI models. A substantial contract backlog exceeding $400 billion caused Oracle’s share price to surge earlier this year, momentarily elevating the company to a market valuation close to a trillion dollars and briefly positioning co-founder Larry Ellison among the wealthiest individuals globally. However, that enthusiasm has since exhibited signs of waning, as analysts express concerns regarding Oracle’s potential overreliance on OpenAI and the extent to which it has leveraged debt to finance the expansion of its data centers.

Adobe is set to announce its most recent quarterly earnings following the conclusion of trading. The shares of the company responsible for innovative products such as Photoshop and Acrobat have declined by over 21% this year, significantly lagging behind the performance of the tech-centric Nasdaq Composite. In a communication to clients, analysts at Stifel remarked that it is “no secret” that a significant “overhang” for Adobe’s stock price has been the perception that AI will serve as a disruptive force within creative departments, “making creators more efficient by orders of magnitude and shrinking the number of addressable seats over time.” A “seat” denotes a pass that grants a user access to Adobe’s applications and services. The analysts, J. Parker Lane and Jack McShane, noted that the factors necessary to “quickly turn sentiment around” regarding Adobe’s stock price remain “foggy.” However, they indicated that a “critical and successful AI-induced strategy pivot” at the company is currently in its “early days.” ” Adobe, whose tools are extensively employed in the photography and film sectors, may find significant advantages by establishing itself as a neutral entity in the AI competition. This strategy could enable it to serve as a central platform for generative AI, allowing users to “test, leverage, and pay for third-party model usage,” according to analysts.