Stock futures point to a weak open ahead of Fed meeting

Wall Street

FOMC meeting in focus

U.S. stock futures look set to open in the red territory on Tuesday as traders await the start of the Federal Reserve’s monetary policy meeting later in the session.

Analysts expect the central bank to announce its first rate hike since 2015-2018 in response to surging consumer prices and low unemployment.

Last week, Fed Jerome Powell told lawmakers on Capitol Hill that he would support raising rates by a quarter-point.

The Fed will announce its policy decision at 2 p.m. ET on Wednesday.

As of 5:20 a.m. ET, the blue-chip Dow futures were indicated 247 points, or 0.75% lower to 32,697. S&P 500 futures dropped 31.5 points, or 0.76% to 4,140.5 while the tech-heavy Nasdaq 100 futures lost 90.5 points, or 0.69% to 12,955.

Crude futures lower as Ukraine and Russia prepare to resume talks

Meanwhile, Ukraine and Russia are expected to meet again today via videoconference for talks aimed at ending their war.

The two sides held a meeting on Monday before taking what an advisor to Ukrainian President Volodymyr Zelenskyy described as a “technical break.”

Kyiv mayor Vitali Klitschko has imposed a 35-hour curfew on the Ukrainian capital after Russian forces struck several apartments outside the city.

As of 5:20 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were down $5.57, or 5.41% to $97.44 a barrel. Global Brent crude futures fell $5.80, or 5.43% to $101.1 a barrel.

U.S.-listed Chinese stocks slump amid concerns over Beijing-Moscow relationship

Shares of major Chinese tech companies tumble in pre-market trade in New York amid rising tensions between Washington and Beijing due to the latter’s relationship with Moscow and reluctance to impose economic sanctions.

U.S. national security advisor Jake Sullivan warned on Monday that China risks facing sanctions of gives Russia military and economic support. Sullivan met with China’s Communist Party member Yang Jiechi in Rome, Italy.

Shares of Chine e-commerce giant Alibaba (NYSE: BABA) shed 4.48% to $74.28 apiece.

Other Chinese tech titans also fell with Baidu (NASDAQ: BIDU) dropping 4.8% to $103.74 a share. (NASDAQ: JD) lost 3.8% to $41.31 a share.