Investing.com - U.S. stock futures pointed to a mixed open on Wednesday, as gains triggered by an aggressive rate hike by the Turkish central bank overnight faded away with focus shifting to a policy announcement by the Federal Reserve later in the day.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 0.1%, S&P 500 futures signaled a decline of 0.1%, while the Nasdaq 100 futures indicated a gain of 0.3%.
Dow futures initially jumped 150 points after Turkey’s central bank raised its overnight lending rate to 12% from 7.75% and its repurchase rate to 10% from 4.5% in its first emergency meeting since 2011 late Tuesday, in an effort to stem the lira’s decline.
The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of reduction in Fed stimulus and concerns over a possible slowdown in China.
But those gains faded away as market players prepared for the outcome of the Fed’s policy meeting later in the day, amid expectations for a USD10 billion reduction in the central bank’s now USD75-billion-a-month stimulus program.
The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over. The central bank announced its first cut to its USD85 billion in monthly bond purchases in December, citing an improving economy.
In earnings news, Yahoo saw shares drop 4.2% after the company’s fourth quarter earnings report released after Tuesday’s closing bell disappointed investors.
Shares of AT&T slumped 2.75% after the telecommunications company’s wireless subscriber growth fell short of Wall Street expectations.
Other stocks in focus include, Boeing, Dow Chemical and Facebook, which are all expected to release quarterly earnings later in the day.
Across the Atlantic, European stock markets erased earlier gains to trade mixed. The EURO STOXX 50 dipped 0.1%, France’s CAC 40 shed 0.15%, Germany's DAX tacked on 0.1%, while Britain's FTSE 100 inched up 0.15%.
European stock markets were 1% higher after the open but gains started to fade away as the effects of Turkey’s aggressive monetary policy move appeared to dim on Wednesday.
Asian stock markets rallied sharply on Wednesday, with Hong Kong's Hang Seng Index rising 0.8%, China’s Shanghai Composite index adding 0.56%, while Japan’s Nikkei 225 Index surged 2.7%.