Investing.com - U.S. stock futures pointed to a flat open on Wednesday morning, as investors shied away from riskier assets a day ahead of several major political and economic events.
The blue-chip Dow futures inched up 4 points, or less than 0.1%, by 6:45AM ET (1045GMT), the S&P 500 futures tacked on 1 point, while the tech-heavy Nasdaq 100 futures rose 5 points.
U.S. equities closed modestly lower on Tuesday as Wall Street hedged bets ahead of key events slated for later this week.
Market players will pay close attention to former FBI director James Comey's testimony before the Senate Intelligence Committee on Thursday.
Investors are fearful that the Trump administration may be further damaged by any revelations that could emerge when Comey testifies about Russia’s alleged involvement in the U.S. election.
Traders were also wary ahead of Thursday's U.K. general election. While pollsters still expect British Prime Minister Theresa May will win the most seats in the election, a tight result could throw the country into political deadlock just days before formal Brexit talks with the European Union are due to begin on June 19.
Additionally, a European Central Bank policy meeting on Thursday is in focus. The ECB is preparing to cut its inflation forecast through 2019 because of weaker energy prices, according to officials familiar with the matter.
A downgrade to the inflation outlook would support the view of top policymakers, including President Mario Draghi, that they must be extremely cautious in communicating and implementing any exit from monetary stimulus.
There is no major economic data or earning reports scheduled for Wednesday.
The dollar index, which tracks the greenback against a basket of six major rivals, was up 0.4% at 96.87 in New York morning trade. It fell to 96.46 on Tuesday, the weakest level since November 9.
Reduced expectations for aggressive U.S. rate hikes from the Federal Reserve in the second half of this year weighed on the greenback.
The Fed is still widely expected to raise borrowing costs by 25 basis points next week, but economists are becoming less sure that it will deliver another two rate hikes this year in the wake of a recent run of disappointing data.
In other markets, European stocks drifted higher, with bank shares advancing in the wake of Spain’s Banco Santander’s deal to buy struggling Banco Popular. Earlier, in Asia, markets ended mixed.
Elsewhere, oil prices crept lower as investors looked ahead to the Energy Department's weekly supply report at 10:30AM ET (1430GMT).
U.S. crude was at $47.88 a barrel, down 31 cents, or around 0.6%, while Brent shed 36 cents to $49.76.