Feds Tipped to Raise Rates Amid Inflation Fears

Stock futures are rising this morning ahead of the Federal Reserve's highly anticipated decision on interest rates. The Dow Jones Industrial Average and S&P 500 futures are each up 0.3%, while Nasdaq futures added 0.6% in recent trading.

The major indexes fell Tuesday for the second straight session as oil prices and government bond yields rose. WTI crude oil futures dropped more than 2% to $103.50 per barrel, after hitting a fresh four-month high yesterday. The yield on the 10-year Treasury note reached 4.97%, up from 5.04% in yesterday's session.

The Federal Reserve is expected to raise its benchmark interest rate for the first time in three years to address mounting inflationary pressure. Fed Chair Kevin Warsh has said repeatedly that the central bank is focused on bringing inflation down to the Fed's target.

Canada could soon become an 'associate member' of the European Union amid its growing trade war with the Trump administration. European Commission President Ursula von der Leyen announced plans to work with Canadian Prime Minister Mark Carney on opening the door for Canada to be the first associate member.

Shares of Intel and SK Hynix are climbing this morning, following a report that the companies could partner to build chips in the US. Retail sales data is due later today, which could provide insights into the health of the American consumer.