To The Moon

U.S. stock index futures waved on Wednesday, ahead of the outcome of the Federal Reserve's rate-setting meeting in which the central bank will seek to balance inflation and banking sector concerns.

Traders have halved the size of the expected interest rate hike to 25 basis points following troubles in the banking sector, with analysts saying a pause was unlikely as it would indicate the turmoil had rattled the Fed.

The U.S. central bank's two-day policy meeting will end at 2 p.m. ET (1800 GMT), with investors keenly awaiting Fed Chair Jerome Powell's conference at 2:30 p.m. ET to gauge the central bank’s rate-hike trajectory.

Market Snapshot

At 07:51 a.m. ET, Dow e-minis were up 8 points, or 0.02%, S&P 500 e-minis were down 1.75 points, or 0.04%, and Nasdaq 100 e-minis were down 21 points, or 0.16%.

Pre-Market Movers

GameStop (GME) - Shares of GameStop soared 49% in premarket trading after the videogame retailer reported a surprise profit in its fiscal fourth quarter and sales that topped analysts’ expectations. It was GameStop’s first profitable quarter since the period that ended in January 2021. GameStop slashed its inventory to just under $683 million at the end of the fourth quarter, down from $915 million a year earlier.

Virgin Orbit (VORB) - Shares of Virgin Orbit Holdings Inc. skyrocketed 65% in premarket trading, to bounce off the previous session’s record-low close, after the launch and space solutions company said it would initiate an “incremental resumption” of operations.

Nike (NKE) - Nike reported fiscal third-quarter earnings and sales that beat Wall Street expectations but shares of the athletic apparel company declined slightly in premarket trading as gross margins contracted. Nike said gross margins contracted by 3.3 percentage points to 43.3%. hit by ongoing aggressive discounting activity, unfavorable exchange rates, and higher production and freight costs. The company also issued a weaker margin forecast for the fiscal year. The shares fell 1% in premarket trading.

First Republic Bank (FRC) - Shares of First Republic Bank dropped about 4% in premarket trading Wednesday after news that the troubled bank reportedly has hired advisers to review its options and manage the crisis.

Luminar Technologies (LAZR) - Luminar Technologies declined 10% after shares of the lidar company were downgraded to Sell from Neutral at Goldman Sachs with a price target of $5, the Fly reported.

Petco Health & Wellness Co. Inc. (WOOF) - Petco ’s stock slid 9% in premarket trade Wednesday, after the pet food and health products company’s fourth-quarter earnings lagged estimates and it offered soft guidance for the current year.

Array Technologies (ARRY) - Array Technologies was down 1.7%. The manufacturer of solar energy products reported fiscal fourth-quarter profit and revenue that beat analysts’ forecasts.

Market News

Fed Caught Between Inflation and Bank Crisis in Crucial Meeting

All eyes in the financial and economic world will be laser-focused Wednesday on the Federal Reserve as Chair Jerome Powell tries to balance his fight against inflation against a sudden banking crisis.

Powell and his colleagues began their meeting Tuesday with the outcome unusually unclear. While most economists expect a quarter-point interest-rate hike, some say policymakers should pause to shore up financial stability.

Another important element of this week’s meeting: Policymakers are set to issue updated rate projections for the first time since December, offering crucial guidance on whether they still expect any additional hikes this year.

The decision and forecasts will be released at 2 p.m. in Washington. Powell will hold a press conference 30 minutes later.