Fed decision looms, Microsoft and Alphabet earnings - what's moving markets

investing.com:

Investing.com — The Federal Reserve gears up to deliver an expected quarter-point interest rate hike, with investors on the lookout for any clues about the central bank's future policy plans. Meanwhile, Microsoft and Google-parent Alphabet post solid earnings despite headwinds from a slowdown in customer spending. But the companies stay away from outlining exactly how much they plan to spend on developing their all-important generative artificial intelligence services.

1. Fed decision looms

The Federal Reserve is widely tipped to raise interest rates by 25 basis points following its latest two-day meeting on Wednesday, meaning the spotlight will likely be even brighter on comments from the central bank's chair Jerome Powell.

According to Investing.com's Fed Rate Monitor Tool, there is a more than 98% probability that the rate-setting Federal Open Market Committee will lift the benchmark fed funds rate to a range of 5.25% to 5.50%.

Yet questions still remain over how policymakers view the road ahead for borrowing costs. Crucially, inflation, the central target of the Fed's long-standing campaign of aggressive rate hikes, is showing signs of cooling.

Fed officials could thus signal that today's projected increase will be the end of its tightening cycle. But with the outlook for price growth and the broader U.S. economy still uncertain, there is also a chance that the bank may choose to give itself the flexibility to raise rates further if needed.

2. Futures point lower

U.S. stock futures edged lower on Wednesday, but stayed relatively close to the flatline, as investors prepared for the Fed's rate decision and a fresh batch of corporate earnings.

By 05:08 ET (09:08 GMT), the Dow futures contract slipped by 67 points or