Dow flirts with fresh records as traders wait for Fed minutes

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U.S. stocks were looking at another upbeat session on Wednesday, with the Dow average set to power to fresh records ahead of the latest Federal Reserve minutes that could provide hints on the number of rate rises in 2018.

What are stock futures doing?

Futures for the Dow Jones Industrial Average












YMH8, +0.17%










 gained 53 points, or 0.2%, to 24,821, set to add to a 105-point rally from Tuesday. In that session, the blue chip benchmark ended just 0.05% below its all-time closing high.

Futures for the S&P 500 index












ESH8, +0.16%










 added 5.35 points, or 0.2%, to 2,698.25 on Wednesday, while those for the Nasdaq-100 index












NQH8, +0.19%










 put on 13.25 points, or 0.2%, to 6,528.

Both the S&P 500












SPX, +0.83%










 and Nasdaq Composite Index












COMP, +1.50%










 closed at records on Tuesday, powered higher by rising energy and technology stocks.

What’s driving the markets?

The positive trading mood from 2017 appeared to continue into 2018, with stocks in Asia and U.S. kicking off the new year on an strong note. European stocks rose on Wednesday after falling on Tuesday, taking a cue from Asia.

The global stock advances came even amid geopolitical uncertainty in Iran, where at least 22 people have died in protests against the government. On Wednesday, tens of thousands of people took to the streets for pro-government rallies across the country, voicing their support for Supreme Leader Ayatollah Ali Khamenei.

The protests started last week over rising inflation and corruption, but focus has since shifted to a wider discontent with Iran’s ruling system and Khamenei. The wave of unrest is now seen as the largest since a disputed 2009 presidential election, and it could filter into markets if it leads to a disruption to the region’s oil industry.

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What’s coming up on the economic calendar?

The highlight for Wednesday is the minutes from the Dec. 12-13 Federal Open Market Committee meeting due at 2 p.m. Eastern Time. Traders are looking for hints on how many times the central bank will hike interest rates in 2018. According to the CME Group’s data, the market is currently pricing in the next rate rise in March.

Ahead of the Fed minutes, the ISM manufacturing data for December and construction spending for November are slated for release at 10 a.m. Eastern. Monthly car sales data are expected throughout the session.

See: MarketWatch’s economic calendar

What are strategists saying?

“Today’s session is another that is looking light of any real headline data. For me the macro picture is all geared towards Friday’s U.S. jobs report, so anything prior to that could well just be noise,” said James Hughes, chief market analyst at AxiTrader, in a note.

“The only area that won’t just be noise comes at [2 p.m. Eastern] when we get the FOMC meeting minutes from the Fed, of which we are looking for indications on rate hikes for 2018. Expectations are that we could see up to 4 rate hikes in 2018, with many believing that the first could happen in March,” he added.

What are other markets doing?

The dollar selloff paused, with the ICE dollar index












DXY, +0.26%










 up 0.1% at 91.957.

West Texas Intermediate crude oil












CLG8, +0.50%










 rose 0.2% to $60.49 a barrel, while gold futures












GCG8, +0.02%










 slipped 0.1% to $1,315.50 an ounce.

Bitcoin futures












BTCF8, +0.34%










retreated 0.9% to $14,725, paring back after a 2.7% rise on Tuesday that came after report that Founders Fund, led by venture capitalist luminary Peter Thiel, had amassed a stake in the digital currency.

Stocks in Asia closed in positive territory, while European stocks broadly traded higher.



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