Stock futures inch higher ahead of Fed minutes release

Stock futures inched higher in overnight trading Tuesday as investors await the latest insights into the Federal Reserve’s policy tightening.

Minutes from the Fed’s Tuesday meeting are slated for release Wednesday afternoon. Investors are bracing for new details about the Fed’s plan to reduce its balance sheet.

Futures on the Dow Jones Industrial Average rose about 30 points, or 0.1%. S&P 500 futures added 0.1% and Nasdaq 100 futures ticked up 0.2%.

The moves in stock futures came after the three major stock averages each fell in Tuesday’s regular session. The Dow dipped about 280 points, or 0.8%. The S&P 500 lost 1.3% and then Nasdaq Composite declined 2.3%.

Stocks turned lower Tuesday as Fed Governor Lael Brainard indicated support for higher interest rates and said a swift reduction of the central bank’s balance sheet could begin as soon as May.

“It is of paramount importance to get inflation down,” Brainard said during a Minneapolis Fed webinar. Brainard has been nominated to be vice chair of the Federal Open Market Committee.

San Francisco Fed President Mary Daly also pledged rate hikes ahead while sharing concerns about inflation.

“I understand that inflation is as harmful as not having a job,” Daly said.