US STOCKS-Wall St set for muted open ahead of Fed verdict

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Futures: Dow up 0.03%, S&P 500 flat, Nasdaq down 0.08%

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Fed rate decision expected at 2 p.m. ET

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GE Vernova rises after bullish 2026 revenue forecast

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Oracle, Broadcom (AVGO) results due later in the day

(Updates to before markets open)

By Johann M Cherian and Pranav Kashyap

Dec 10 (Reuters) - Wall Street's main stock indexes were set for a subdued open on Wednesday, ahead of a Federal Reserve monetary policy decision that is widely expected to deliver an interest rate cut, while investors fear hawkish commentary on the path of future easing.

The central bank's ongoing meeting is likely one of its most divisive in years, as policymakers seek a delicate balance between reducing borrowing costs to support the labor market and curbing any reacceleration of inflation.

A prolonged absence of fresh economic data following the recent government shutdown, combined with uncertainty over who will lead the Federal Reserve next year, is adding to policymakers' challenges.

White House economic adviser Kevin Hassett, an advocate for interest rate cuts, is a front-runner for the position.

Traders are pricing in an 89.9% chance that the Federal Reserve will cut interest rates by 25 basis points at 2 p.m. ET, according to CME's FedWatch Tool, and are also betting on additional easing in 2026.

"What will be more revealing than the Fed decision itself is the press conference following the meeting in which Chair Jerome Powell will give some forward guidance on the potential for further cuts looking ahead to 2026," said Emma Wall, chief investment strategist at Hargreaves Lansdown.

"Eagle eyes will be on the voting split too, and any comments from individual members in the coming weeks. This remains a jumpy market, with valuation concerns and weakening economic data, rhetoric matters."

The Fed's balance sheet and plans to purchase short-term bills to ensure ample liquidity in the banking system will also be on investors' radar.

Inflation worries have already prompted market participants to price in higher interest rates by the end of 2026 in Australia, Canada and Japan.

At 08:35 a.m. ET, Dow E-minis were up 15 points, or 0.03%, S&P 500 E-minis were up 0.25 points, or about flat and Nasdaq 100 E-minis were down 20.25 points, or 0.08%.

U.S. stocks have rallied since late November on lower rate expectations, bringing the S&P 500 within 1% of a record high. The Russell 2000 index, which tracks small caps, also hit a record high, outperforming Wall Street's benchmark this quarter.

The rest of the week is likely to be dominated by earnings reports from major artificial intelligence players, including software company Oracle and chipmaker Broadcom (AVGO) , due after markets close.

The results will be in focus as concerns over debt-fueled corporate spending, complex deal-making across the broader AI sector and uncertainty about how companies will monetize the disruptive technology have triggered sell-offs in both equity and debt markets in recent months.

On Wednesday, shares of energy equipment manufacturer GE Vernova gained 9.8% after forecasting higher revenue in 2026, signaling strong demand for its AI-related infrastructure.

Lending giant JPMorgan Chase (JPM) steadied following a nearly 5% drop in the previous session after saying it expects higher expenses next year.

GameStop fell 5.2% after the video game retailer announced downbeat third-quarter revenue.

Casual dining chain Cracker Barrel lost 4.8% after lowering its annual revenue forecast. (Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru; Editing by Tasim Zahid and Shinjini Ganguli)