(RTTNews) - Following the mixed performance seen in the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.
Traders may be reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later this afternoon.
While the Fed is widely expected to leave interest rates unchanged, the accompanying statement and new Chair Kevin Warsh's post-meeting comments could impact the outlook for rates.
Lingering uncertainty about the preliminary U.S.-Iran deal may also keep some traders on the sidelines amid a lack of details about the proposed agreement.
Crude oil prices are regaining some ground after President Donald Trump noted the deal is "not final" and warned the U.S. would "go right back to dropping bombs" on Iran if he doesn't like the terms.
In U.S. economic news, the Commerce Department released a report showing retail sales in the U.S. increased by much more than expected in the month of May.
The Commerce Department said retail sales grew by 0.9 percent in May after rising by a downwardly revised 0.4 percent in April.
Economists had expected retail sales to climb by 0.5 percent, matching the increase originally reported for the previous month.
Following the strong upward move seen over the past few sessions, the major U.S. stock indexes turned in a mixed performance during trading on Tuesday. While the Nasdaq and the S&P 500 gave back ground, the narrower Dow climbed to a new record closing high.
The tech-heavy Nasdaq showed a significant pullback, slumping 307.60 points or 1.2 percent to 26,376.34. The S&P 500 also fell 42.94 points or 0.6 percent to 7,511.35, but the Dow rose 328.64 points or 0.6 percent to 51,999.67.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index increased by 0.4 percent.
Meanwhile, the major European markets are turning in a lackluster performance on the day. While the French CAC 40 Index is just above the unchanged line, the U.K.'s FTSE 100 Index is down by 0.1 percent and the German DAX Index is down by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.58 to $76.63 a barrel after plummeting $4.70 to $76.05 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,343.80, down $10.60 compared to the previous session's close of $4,354.40 On Tuesday, gold inched up $2.80.
On the currency front, the U.S. dollar is trading at 160.26 yen compared to the 160.45 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1597 compared to yesterday's $1.1607.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
