Investing.com - U.S. stock futures pointed to a marginally higher open on Wednesday, as investors looked ahead to minutes of the Federal Reserve’s March policy meeting for fresh clues on the timing of the next U.S. rate hike.
The blue-chip Dow futures inched up 24 points, or 0.14%, by 10:48GMT, or 6:48AM ET, the S&P 500 futures tacked on 4 points, or 0.18%, while the tech-heavy Nasdaq 100 futures advanced 8 points, or 0.17%.
Wall Street fell sharply on Tuesday, with the S&P 500 losing 1%, as investors took gains off the table following a recent rally.
Market players will be focusing on minutes of the Federal Reserve’s March policy meeting due at 18:00GMT, or 2:00PM ET, for some clarity on where the U.S. central bank stands on its path toward rate hikes.
The Fed surprised markets last month by cutting its rate hike projection for this year to two from the four it had previously projected, citing the potential impact from weaker global growth on the U.S. economy.
Traders will also be paying close attention to speeches by Cleveland Fed President Loretta Mester, St. Louis Fed President James Bullard and Dallas Fed President Rob Kaplan later in the day to further judge the balance of opinion among policymakers on the prospect of further rate hikes.
Fed Chair Janet Yellen last week assured markets the central bank would be cautious in raising rates, stating that there are plenty of risks to its forecast.
Meanwhile, oil prices rallied 3% as Kuwait raised fresh hopes for a production freeze and after an industry group late Tuesday reported a surprising drop in U.S. supplies.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 3.2 million barrels.
Among active pre-market movers, Allergan Plc (NYSE:AGN) dropped 1.5%, while Pfizer (NYSE:PFE) tacked on 1%, following news that the drug-makers will mutually terminate their merger after changes in U.S. tax regulations dealt a death blow to the $160 billion deal.
Shares of Cree Inc (NASDAQ:CREE) tumbled almost 19% after the LED lighting company said it anticipated a loss in the third quarter due to lower commercial orders.
Companies slated to release quarterly earnings on Wednesday include Monsanto (NYSE:MON), Constellation Brands (NYSE:STZ), Bed Bath & Beyond Inc (NASDAQ:BBBY) and Apollo Education Group Inc (NASDAQ:APOL).
Elsewhere, European stock markets pushed cautiously higher on Wednesday, as a rally in oil prices boosted energy companies. Earlier, shares in Asia were mixed, as sentiment stayed cautious, despite data showing improvement in Chinese services activity.
The Caixin services purchasing managers' index rose to 52.2 last month, up from February's reading of 51.2. A reading above 50 indicates expansion.
In the currencies market, the U.S. dollar was trading close to its lowest level in 17 months against the yen on Wednesday after Japan's Prime Minister Shinzo Abe said that countries should avoid weakening their currencies with "arbitrary intervention."
USD/JPY was little changed at 110.36, not far from Tuesday’s lows of 109.93, the weakest level since October 31, 2014.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.3% at 94.90, boosted by weakness in the euro.
In bond markets, the bounce in oil and modest lift in risk appetite halted German Bund yields push towards zero. U.S. Treasury yields also inched higher after dropping to a five-week year low of 1.715% on Tuesday.