(Sharecast News) - Wall Street futures were firmly in the green ahead of the bell on Wednesday as market participants awaited the Federal Reserve's latest policy decision with bated breath.
As of 1220 GMT, Dow Jones futures were up 1.13%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.28% and 1.86% higher, respectively.
The Dow closed 599.10 points higher on Tuesday even as traders remained concerned about the ongoing Russia-Ukraine conflict, a spike in Covid-19 cases in China, and the Federal Reserve's all-important interest rate decision.
Futures were trading higher partly due to indications that a ceasefire between Russia and Ukraine could be possible, with Ukrainian president Volodymyr Zelenskyy stating a peace agreement had begun to "sound more realistic" on Tuesday. Russian foreign minister Sergey Lavrov also said there was "some hope of reaching a compromise".
Commodity prices, which surged following Russia's invasion of its neighbour, were slightly lower ahead of the bell on Wednesday, with West Texas Intermediate, which was sitting at around $130 per barrel at one point this month, down 0.15% at $96.58 per barrel and Brent crude 0.11% weaker at $100.02 a barrel.
However, Wednesday's primary focus will be the Federal Reserve, as the central bank wraps up its two-day policy meeting. Many expect the Fed to raise rates by 0.25% for the first hike since 2018 and also offer a new quarterly forecast that could point towards five or six more hikes this year.
On the macro front, mortgage applications fell 1.2% in the week ended 11 March, according to the Mortgage Bankers Association of America, following an 8.5% jump a week earlier. Applications to refinance a home loan declined 2.8%, while those to purchase a home edged up 0.7% as the average fixed 30-year mortgage rate increased to 4.27% - the highest rate seen since May 2019.
Still to come, February retail sales will be published at 1230 GMT, followed by January retail sales and the NAHB's March housing market index at 1400 GMT, and the Fed's interest rate decision at 1800 GMT and press conference at 1830 GMT.
In the corporate space, Lennar, Guess? and Williams-Sonoma will all publish earnings after the close.