Stock index futures rose on Wednesday after the previous day's tumble with the Federal Reserve expected to reassure investors it won't move too soon on its tightening policy.
The Fed is also seen repeating a vow that it will keep interest rates exceptionally low for an extended period. The Fed may also acknowledge a slight slowdown in the pace of the U.S. economic recovery, according to economists.
Investors are keen that the central bank not begin to tighten its monetary policy too soon, lest it stifle the still-fragile recovery. The Fed is expected to release its statement about 2:15 p.m. EDT.
Stocks fell more than 1 percent in another late-day sell-off Tuesday after unexpectedly poor housing figures. The S&P 500 fell through its 200-day moving average, which had been a basis of support in the last few days. Various levels watched by technicians stand in a tight range, which could keep the S&P in a narrow trade.
If you look at yesterday's technical set-up, it seemed we had a pretty good fight between 1,100 and 1,130, and I wouldn't be surprised if we have more of the same today, said Barry Ritholtz, director of equity research at Fusion IQ in New York.
That seems to be the range where the bulls and bears are doing battle.
S&P 500 futures rose 4.3 points and above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 49 points, and Nasdaq 100 futures added 8.25 points.
The U.S. Interior Secretary said late Tuesday he will order a new moratorium on deepwater drilling in the coming days after a U.S. judge overturned a six-month ban. The temporary ban is aimed at ensuring offshore safety after the explosion of BP Plc's rig in the Gulf of Mexico.
Shares of Transocean Ltd rose 1.3 percent to $53.18 in early market trade, while BP added 1.6 percent to $30.16.
On the data front, new home sales for May will be released at 10:00 a.m. (1400 GMT). Economists expect that sales fell to an annual rate of 410,000 units from 504,000 in April.
Adobe Systems Inc reported after the closing bell that quarterly revenue surged, but its shares slipped 1.5 percent to $32.28 premarket as profits failed to grow as quickly as sales.
Jabil Circuit Inc jumped 8.6 percent to $14.76 after its quarterly results beat expectations and it forecast a strong end to the year.
Philip Morris International Inc , the maker of Marlboro cigarettes, cut its full-year earnings outlook as it was hurt by a weak euro.
(Editing by Jeffrey Benkoe)