Nasdaq futures indicated a modest decline on Wednesday ahead of the Federal Reserve’s decision regarding interest rate adjustments, as financial markets largely anticipate a reduction of a quarter-percentage point. Futures linked to the tech-heavy Nasdaq, the blue-chip Dow Jones Industrial Average, and the benchmark S&P 500 indicated declines of 0.2%, 0.1%, and 0.1%, respectively. On the previous day, the Dow and S&P 500 concluded with declines of 0.4% and 0.1%, respectively, whereas the Nasdaq recorded a modest increase of 0.1%. Amidst a prevailing sentiment among investors anticipating a decrease in the Fed funds rate, the small-cap Russell 2000 index achieved a new all-time high yesterday. Smaller firms generally exhibit superior performance in environments characterized by declining interest rates, as they reap the advantages of increased profits and reduced financing costs.

The Federal Reserve is set to reveal its decision at 2 p.m. today, with the reports suggesting that financial markets are anticipating a 90% probability that the central bank will reduce its key interest rate to a range of 3.5% to 3.75%. The 10-year Treasury yield, a key determinant of interest rates across various commercial and consumer loans, increased to approximately 4.21%—marking its peak since early September—up from 4.19% at the close on Tuesday. Bitcoin was trading at approximately $92,000, a decline from an overnight peak of $93,200.

The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, declined to 99.11. Gold futures experienced a decline of 0.2%, settling at $4,225 per ounce, whereas West Texas Intermediate futures, the benchmark for U.S. crude oil, saw an increase of 0.6%, reaching $58.60 per barrel. In corporate news, shares of GE Vernova surged 10% in premarket trading following the firm’s upward revision of its outlook, a doubling of its dividend, and an increase in its buyback, driven by strong power demand. In the aftermath of earnings announcements, shares of Cracker Barrel Old Country Store experienced a decline of 4%, while GameStop saw a drop of 6%, and AeroVironment faced a decrease of 4%.

Oracle and Adobe were slightly higher and lower, respectively, ahead of their results after the closing bell. JPMorgan Chase shares were little changed following a 4.7% decline that weighed on the Dow yesterday after Marianne Lake, its CEO of Consumer & Community Banking, warned that the bank’s costs would rise next year and characterized the environment as being a little bit more fragile.