Stock futures move higher as investors await Fed rate decision: Live updates

U.S. stock futures moved higher Wednesday morning following a winning day for the major averages, as investors awaited the latest Federal Reserve policy decision.

Dow Jones Industrial Average futures were up 0.8%, while S&P 500 futures added 0.5%. Nasdaq 100 futures inched higher by 0.17%.

Wall Street is coming off a positive session for the major benchmarks. The 30-stock Dow advanced 320 points, or 0.8%, notching its best day since Feb. 22. The S&P 500 rose roughly 0.6%, while the Nasdaq Composite added about 0.4%.

Recent weakness in tech stocks has had some investors deliberating whether the artificial intelligence rally is slowing, as other parts of the market gain traction. On Tuesday, communication services — which includes the likes of Alphabet and Meta Platforms — was the only losing sector in the S&P 500, as energy and utilities stocks led the broader index.

Semiconductor stocks also underperformed, with the VanEck Semiconductor ETF (SMH) slipping 0.2%. Shares of bitcoin proxy MicroStrategy and Super Micro Computer were notable decliners.

"All else equal, it's not a bad thing to see this rotation and churn happening under the surface," Liz Ann Sonders, chief investment strategist at Charles Schwab, said on CNBC's "Closing Bell." "I think it is sending a message about economic resilience, and that's why there's more of a cyclical bias to what has been working."

The Fed is broadly anticipated to keep interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday. However, investors will scan the dot plot for insight into the number and timing of rate cuts, with many anticipating the central bank will start lowering rates in June.

Some are concerned a recent spate of hot inflation reports could