Dow futures soar ahead of Fed decision: 5 things to know before market opens

• The Fed is expected to maintain rates in the 3.5%-3.75% range; investors will focus on Powell's commentary about how rising energy costs may impact future policy decisions.
• Micron reports earnings after market close, with high expectations following a 62% stock rally driven by strong AI-driven high-bandwidth memory demand for data centers.
• Mortgage rates jumped to 6.30% for 30-year fixed loans, the highest since late last year, causing mortgage application activity to drop 10.9% and cooling refinance momentum.

Market Summary: Fed Decision Day Drives Futures Higher

Market Movement:

U.S. stock futures rallied Wednesday morning ahead of the Federal Reserve's rate decision. Dow Jones futures climbed 240 points (+0.5%), while S&P 500 and Nasdaq 100 futures gained 0.5% and 0.7%, respectively. The advance follows a positive previous session and was supported by declining oil prices.

Key Focus Areas:

Federal Reserve Decision: Markets widely expect the Fed to maintain interest rates in the 3.5%-3.75% range as policymakers adopt a cautious stance on inflation and economic growth. Investor attention centers on Fed Chair Jerome Powell's commentary, particularly regarding volatile energy prices and their potential impact on future monetary policy.

Micron Earnings: Memory chipmaker Micron reports quarterly results after the close, with heightened investor scrutiny given the stock's remarkable 62% surge year-to-date. The rally has been driven by strong AI-driven demand for high-bandwidth memory used in data centers and AI systems.

Economic Data: The Bureau of Labor Statistics will release February's Producer Price Index after previous delays from government shutdowns. The report arrives less than three weeks after January's data, with markets monitoring whether producer price cooling continues or reverses, especially in energy and supply chain sectors.

Housing Market: Mortgage rates jumped to 6.30% from 6.19% for 30-year fixed loans, reaching the highest level since late 2025. This increase triggered a 10.9% decline in mortgage applications, stalling earlier refinancing momentum.

Global Markets: European markets showed mixed performance with FTSE 100 flat while Germany's DAX and France's CAC 40 rose 0.6%. Asian markets closed mixed, with tech gains following Nvidia's positive outlook.