NEW YORK—U.S. markets were poised to rebound Wednesday ahead of expected action from the Federal Reserve to raise interest rates in its ongoing effort to cool inflation.
Futures for the Dow Jones Industrial Average rose 0.6 percent and futures for the S&P 500 gained 0.8 percent while oil prices dipped.
Economists believe the Fed could hike rates by three-quarters of a percentage point, triple the usual increase, with the cost of living for Americans rising surprisingly fast.
A “hawkish surprise” from the Fed could be a “further shock to risk assets,” Anderson Alves of ActivTrades said in a report. “Money markets are already pricing around 90% possibility of such action.”…