U.S. stocks are set to edge higher at the open on Wednesday with investors showing caution ahead of the latest Federal Reserve meeting and with earnings season in full swing. 

Dow futures were trading higher by 0.14% at 26334.00 while Nasdaq 100 futures inched up 0.46% to 10,588.25 and S&P 500 futures rose 0.26% to 3221.50 respectively, at the time of writing.

The Federal Reserve concludes its two-day meeting later Wednesday, with investors looking for guidance on the U.S. economy’s recovery from the Covid-19 pandemic. 

The risks to the recovery since the central bank’s last meeting appear to have grown substantially, given the spike in infections and the associated slowdown in economic activity in three of the country’s four most populous states — California, Florida and Texas — this month.  

Also in the spotlight will be heads of the Silicon Valley tech giants, the CEOs of Facebook, Amazon, Google and Apple who will testify at a hearing of the House antitrust subcommittee in Washington.

Meanwhile, the earnings season continues apace, with numbers expected on Wednesday from Boeing, General Motors, General Electric, PayPal, Shopify, Qualcomm and Boston Scientific.

On Capitol Hill, Republicans and Democrats are scrambling to pass the latest stimulus measures before Friday, when some earlier measures are due, to expire. 

Economic data centers around the June pending home sales, at 10 AM ET, which are expected to rise 15% from the previous month which itself showed a record jump of 44%.

Oil prices pushed higher on Wednesday, helped by a surprise drop in U.S. inventories. U.S. crude traded 0.73% higher at $41.34 a barrel, while the international benchmark Brent rose 0.96% to $44.03 a barrel at the time of writing.

Government crude oil stocks data are due at 10:30 AM ET, with analysts expecting an addition of 357,000 barrels for the week ending July 24, although the surprise drop in inventories recorded by American Petroleum Institute on Tuesday puts an enormous question mark next to that expectation.

Elsewhere, gold futures rose 0.59% to $1,956.15/oz, still at highly elevated levels, while EUR/USD traded at 1.1746, up 0.27%.

On the technical front, the RSI is at 47.50% and suggests that the market can move in an upward direction. The current price is trading above the 5days moving average. The stochastic is forming an upside crossover.

Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

Trade Suggestion—DOW JONES—BUY at 26300 Take Profit at 26600 Stop Loss at 26080