Dow Jones futures move little as traders await Fed policy decision

• Dow Jones futures steady as traders adopt caution ahead of Fed rate decision on Wednesday.
• Traders will likely observe Fed's Summary of Economic Projections, including the "dot plot," for insights into the Fed's policy outlook.
• US stocks may rise as strong retail and labor data boost Fed rate cut expectations despite hotter inflation.

Dow Jones futures remain steady near 45,750 during European hours on Wednesday, ahead of the United States (US) market open. Moreover, the S&P 500 futures decline 0.20% to trade near 6,600, while Nasdaq 100 futures depreciate 0.10% to trade around 24,2500. Wall Street will likely watch the US Federal Reserve (Fed) interest rate decision later in the day.

US stock futures struggle despite the Fed is widely expected to deliver a 25-basis-point rate cut in response to signs of a cooling labor market and subdued inflation. The Fed's Summary of Economic Projections (SEP), the 'dot plot,' will be eyed, where each member of the Federal Open Market Committee (FOMC) expects the federal funds rate in the near future.

However, US markets may draw gains amid rising likelihood of multiple Fed interest rate cuts, with strong retail sales and labor data outweighing hotter inflation. Additionally, Morgan Stanley and Deutsche Bank projected 25-basis-point reductions at each of the Fed's meetings in September, October, and December.

The US Senate narrowly confirmed US President Donald Trump's nominee to the Fed Board, Stephen Miran, in a Monday evening vote, clearing the way for him to participate in policy decisions this week. Meanwhile, an appeals court rejected Trump's bid to remove Fed Governor Lisa Cook over alleged mortgage fraud, ensuring she remains on the board while legal proceedings continue.