Investing.com –Wall Street futures pointed to a higher open on Monday as a rise in oil prices boosted sentiment and market participants looked ahead to the key central bank policy decisions later in the week.
The blue-chip Dow futures rose 80 points, or 0.44%, by 6:53AM ET (10:53AM GMT), the S&P 500 futures gained 9 points, or 0.42%, while the tech-heavy Nasdaq 100 futures traded up 18 points, or 0.38%.
A light calendar stateside will only see the release of the September NAHB housing market index at 10:00AM ET (14:00GMT) with no major companies reporting earnings.
In that context, market participants were gearing up for the Federal Reserve’s (Fed) policy decision on Wednesday.
The Fed is not expected to make a move on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT) on Wednesday, but investors will first focus on the statement and updated forecasts for economic growth and interest rates that will be released simultaneously with the rate decision for a first gauge on when the central bank contemplates returning to policy normalization.
Fed chair Janet Yellen will then hold what will be a closely-watched press conference 30 minutes after the release as investors look for any change in tone about the economy or future rate hikes.
Markets are currently pricing in just a 15% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 56.5%.
Ahead of the Fed decision on that same Wednesday, the Bank of Japan (BoJ) is set to release its own rate decision and monetary policy statement, followed by a press conference with governor Haruhiko Kuroda.
Unlike the lack of a move expected from the Fed, speculation on the BoJ decision points to a possible interest rate cut deeper into negative territory, tweaks to its asset-purchase program or new rules on the duration of securities it will purchase in the bond market.
Meanwhile, oil prices gained more than 1% on Monday on the back of news that Venezuelan President Nicolas Maduro said that OPEC and non-OPEC countries were "close" to reaching a deal to stabilize oil markets and that he aimed for an announcement this month.
Maduro’s comments on Sunday came despite the fact that OPEC secretary general Mohammed Barkindo said late Saturday that no decision would be made at the informal talks.
However, Barkindo did indicate that OPEC members may call an extraordinary meeting to discuss oil prices if they reach consensus at the informal gathering.
U.S. crude futures traded up 1.26% to $44.17 by 6:54AM ET (10:54AM GMT), while Brent oil gained 1.16% to $46.30.
Elsewhere, European and U.K. stocks rose more than 1% on Monday, as investors cheered a rally in oil markets and awaited the start of the Federal Reserve's policy meeting this week.
Earlier, Asian shares ended mostly higher in holiday-thinned trade, as investors remained cautious before the Fed and the BoJ policy setting meetings this week. Markets in Japan were closed for a public holiday, while a technical glitch reduced trading hours for the Australian stock market.