Dow futures jump 300 points as Wall Street tries to rally for a second day, Fed decision ahead

Stock futures rose Wednesday as traders tried to build on the sharp gains from the previous session, while Wall Street awaited the Federal Reserve’s latest monetary policy decision.

Futures on the Dow Jones Industrial Average climbed 359 points, or 1.1%, while S&P 500 futures rose 1.2%. Nasdaq 100 futures jumped 2%.

Micron Technology was among the best-performing S&P 500 stocks in the premarket, gaining more than 4%. Starbucks shares also climbed 3.5%, while Dow member Boeing advanced 2.3%.

Futures were rallying in part on signs that a ceasefire could be possible in the Russia-Ukraine war.

Ukrainian President Volodymyr Zelenskyy said a peace agreement was beginning to “sound more realistic” in an address to the nation Tuesday. Russian Foreign Minister Sergey Lavrov told the BBC there was “some hope of reaching a compromise.” Russian State media quoting the Kremlin echoed similar sentiments overnight.

The war between Ukraine and Russia has sent ripples through global financial markets, sending commodity prices sharply higher and stocks lower. However, some commodities have cooled off in recent days, while the U.S. equity market tries to find its footing.

U.S. oil traded at around $95.70 per barrel Wednesday, after topping a multiyear high of $130 earlier this month.

Stocks, meanwhile, are coming off a stellar session in which the Dow surged nearly 600 points, while the S&P 500 snapped a three-day losing streak.

To be sure, all eyes are on the Fed on Wednesday, as the central bank wraps up a key two-day policy meeting.

The Fed is widely expected to raise rates by a quarter-point, the first hike since 2018. Watchers are also expecting the central bank to offer a new quarterly forecast that could indicate five or six more hikes this year.