The Dow Futures contract was up 50 points, or 0.2%, at 06:45 ET (10:45 GMT), while the S&P 500 Futures were up 10 points, or 0.2%, and the Nasdaq 100 Futures were up 30 points, or 0.2%.

As investors wait for the Federal Reserve to announce its most recent policy decision, U.S. stocks are anticipated to open slightly higher on Wednesday, rebounding from the previous session’s significant losses.

The major indices had their second straight losing session on Tuesday as investors expressed concern over the stability of the nation’s banking system in the wake of First Republic Bank’s failure, the third regional institution to fail in the past few months.

The broad-based S&P 500 fell 1.2%, the tech-heavy Nasdaq Composite 1.1%, and the blue-chip Dow Jones Industrial Average closed almost 360 points, or 1.1%, lower.

The completion of the two-day Federal Open Market Committee meeting will be the major topic of discussion. At 14:00 ET, the most recent interest rate decision is scheduled, and 30 minutes later, Chair Jerome Powell will hold a news conference.

People are especially interested in the forward guidance because it is largely anticipated that the U.S. central bank would increase interest rates by 25 basis points once more in its ongoing fight against inflation.

Although inflation is still high, there is growing hope that the Fed will pause rate increases at its next meeting in June while it assesses the results of its previous tightening measures. The weakness of the local banking sector heightens this hope.

ADP private payrolls, which are expected Wednesday before the Fed statement and will be extensively examined as a forerunner to Friday’s official jobs report, are another piece of labour data that is due.

Investors will also be watching for any updates on the country’s debt ceiling as the June deadline, which Treasury Secretary Janet Yellen earlier this week cautioned about, approaches.

In business news, shares of Advanced Micro Devices (NASDAQ:AMD) dropped more than 7% before the market opened after the chipmaker gave a gloomy outlook for the current quarter as it adapts to a severe PC slowdown.

The stock of Starbucks (NASDAQ:SBUX) fell 5% before the market opened despite the coffee brand beating quarterly earnings projections thanks to a strong rebound in business in China. However, it decided not to raise its 2023 guidance.

A number of companies, including Qualcomm (NASDAQ:QCOM), Spirit AeroSystems (NYSE:SPR), Yum! Brands (NYSE:YUM), and CVS Health (NYSE:CVS), are expected to report higher earnings.

Despite a larger-than-expected decline in U.S. crude stockpiles, oil prices declined on Wednesday, reaching their lowest levels since mid-March, ahead of the likely Fed interest rate increase.

For the first time since December, according to data from the American Petroleum Institute released on Tuesday, U.S. oil stocks stockpiles have fallen for three consecutive weeks.

The official Energy Information Administration data is scheduled to be released later in the day, but the market is already concerned about the potential effects of another U.S. interest rate hike on economic activity and, consequently, oil demand.

U.S. oil futures were 2.9% lower at $69.54 per barrel by 06:45 ET, while the Brent price fell 2.8% to $73.23 per barrel.

Gold futures increased by 0.1% to $2,025.90/oz, and the EUR/USD traded 0.4% higher at 1.1037.