March 18 - U.S. stock index futures rose on Wednesday as a modest retreat in oil prices provided some relief for investors ahead of a Federal Reserve policy update and fresh data on price pressures. The move in futures came alongside signs of sustained demand for infrastructure that supports artificial intelligence, lifting chipmakers in premarket trade.
Chipmakers Nvidia and Advanced Micro Devices each climbed about 1% in premarket activity. Nvidia secured Beijing approval to sell its second-most powerful artificial intelligence chips in China, and is reportedly preparing a version of the Groq AI chip for the Chinese market. AMD said it had signed an agreement with Samsung Electronics to broaden their strategic partnership on memory chip supplies aimed at AI infrastructure.
All attention remained fixed on the Fed, which was widely expected to hold its benchmark interest rate steady when its two-day meeting concludes at 2 p.m. ET. Market participants said the greater emphasis would be on Chair Jerome Powell's remarks, notably how tariffs, higher energy costs stemming from the current Middle East crisis and a weakening job market might influence policy later in the year.
Traders are pricing in a later start to rate reductions, with the first cut now anticipated in December rather than July, according to LSEG-compiled data. "Our economists suspect the FOMC will trim growth forecasts marginally, push up its inflation forecast and then delay the 2026 rate cut until 2027," said Benjamin Schroeder, senior rates strategist at ING. "That said, given the situation, the Fed will likely have little conviction in its forecasts, and Chair Powell will be certain to underline the challenges in the current volatile environment."
Producers' prices for February were scheduled for release at 8:30 a.m. ET, offering policymakers one more window into underlying price pressures before the Fed's decision and public remarks.
At 05:08 a.m. ET, futures trading showed Dow E-minis up 268 points, or 0.57%, S&P 500 E-minis up 35.5 points, or 0.53%, and Nasdaq 100 E-minis up 165.75 points, or 0.67%.
The conflict in the Middle East remained unresolved and, despite a small pullback, crude oil prices were still trading close to $100 a barrel. Market participants noted some temporary relief to supply concerns after sources said a deal had been reached to resume crude exports from Iraq's Kirkuk fields to Turkey's Ceyhan port via pipeline.
Travel-related shares gained ground as well. United States carriers such as Delta, American and Carnival climbed more than 1% each, extending a rebound from Tuesday after airlines raised their current-quarter forecasts on the belief that resilient demand can offset higher fuel-related operating costs.
The Middle East tensions have intensified market volatility, yet U.S. equities have been supported by a rebound in technology names and by investor relief that the United States is a net energy exporter. The CBOE VIX index, a common measure of market stress, eased to two-week lows after earlier in the month touching highs not seen since April 2025. The S&P 500 posted its first back-to-back daily gains in three weeks on Tuesday.
On the corporate front, Lululemon shares fell 2% after the apparel maker forecast 2026 revenue and profit below analysts' estimates. The company, which is amid a proxy fight, added a former chief executive of Levi Strauss to its board. A small-cap drone autonomy software company, Swarmer, surged 50% a day after listing on the Nasdaq.
Memory and storage names also saw moves: Micron advanced 2.7% ahead of its scheduled earnings later in the day, and SanDisk climbed 2.8%.
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With the Fed's statement and Chair Powell's subsequent comments imminent, investors remained focused on how evolving energy market dynamics, trade-related costs and employment trends could alter the policy outlook and the timing of rate cuts. The combination of geopolitical uncertainty, persistent inflationary signals and the upcoming data releases creates an environment in which market participants expect the Fed to be cautious in its forward guidance.
Summary: U.S. futures rose after oil prices eased, while attention centered on the Federal Reserve's policy decision and Chair Powell's assessment of how energy costs, tariffs and job market weakness might affect future monetary policy. Tech names were buoyed by AI-related demand, and data on producer prices for February was due before the Fed's announcement.