Fred Imbert, Sam Meredith
Dow Jones Industrial Average futures traded 151 points higher, indicating a gain of 160 points at the open. S&P 500 and Nasdaq 100 futures also gained.
Facebook was among the premarket leaders, rising more than 1% after launching a new cryptocurrency called Libra. The social media company partnered with Visa, PayPal and other companies that will accept Libra payments.
The Fed is expected to leave rates unchanged after this meeting, which starts Tuesday. However, investors will monitor whether policymakers at the central bank lay the groundwork for rate cuts later in the year. Traders are pricing in three rate cuts before year-end, according to the CME Group’s FedWatch tool.
Hope for looser monetary policy eased pressure in equities this month. The major indexes entered Tuesday’s session up at least 5% this month.
The Fed’s decision is scheduled to be announced Wednesday at 2 p.m. ET.
The meeting comes after jobs growth and manufacturing activity in May slowed down. This, coupled with lingering worries over U.S.-China trade has led to increasing worries over the global economy.
Investors also cheered the prospects of more stimulative measures from Europe. Mario Draghi, president of the European Central Bank, said Tuesday: “In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required.”
Draghi’s comments sent the euro sliding against the dollar. They also jolted European stocks. The Stoxx 600 index climbed more than 1%, along with the German Dax and the French CAC 40.
Trump criticized Draghi’s remarks, noting additional ECB stimulus makes it “unfairly easier ” for Europe to compete with the U.S.
On the U.S. data front, housing starts and building permits for May are scheduled for 8:30 a.m. ET.