The Swiss Market Index (SMI) was expected to open 0.3% higher before trading on Wednesday, recovering from Tuesday's 0.5% decline that left the benchmark at 13,809 points, IG Bank said.
Asian markets were mixed early Wednesday as investors awaited the US Federal Reserve's rate announcement. The Nikkei-225 in Tokyo slipped 0.1%, Shanghai also fell 0.1%, while South Korea's exchange gained 0.8%. The indices had declined four consecutive sessions before Wednesday's mixed action.
Traders priced in a near-certain 25-basis-point rate hike. According to the CME Group's FedWatch tool, the probability of a quarter-point increase stood at 92.4%. Rising US Treasury yields and elevated oil prices continued to dampen sentiment, they said.
The dollar index, measuring the greenback against six major currencies, hovered near a two-week high. The dollar rose 0.1% to 155.29 yen, strengthened to 6.7106 yuan versus the Chinese currency, and climbed to 0.8189 Swiss francs. The euro was almost unchanged at 1.1540 dollars and 0.9450 francs.
Oil prices retreated after Tuesday's rally. Brent crude fell 0.6% to $108.14 a barrel, and US WTI crude lost 0.9% to $104.85. Prices had surged nearly 3% the previous day, but traders cited reports that crude loading at the Saudi port of Yanbu on the Red Sea had been suspended.
On Wall Street, the Dow Jones slipped 0.6% to 52,093, the Nasdaq dropped 0.8% to 25,982, and the S&P 500 gave up 0.4% to 7,586. The broad sell-off was driven by fears of rising rates and sustained high oil prices.
The Fed was concluding its two-day policy meeting. With a robust labor market and inflation fueled by Middle East conflict, investors widely expected the 25-basis-point hike — the first increase in over three years. Ahead of the decision, the yield on the ten-year US Treasury breached 5%, marking its highest level since 2007.
Geopolitical tensions and renewed attacks on Saudi energy infrastructure pushed oil higher, making the energy sector the only major industry to post gains, rising 2.3% on Tuesday.
"This will probably not be a one-time thing, but a series of interest rate increases," said Paul Nolte, market strategist at asset manager Murphy & Sylvest. "It will depend on oil. That is really the source of inflation, and it is starting to spread to other parts of the market."
Technology and cryptocurrency stocks came under pressure. Concerns about the high energy demands of AI data centers weighed on the sector; the semiconductor index managed only a marginal 0.4% gain, barely recovering from Monday's sell-off. A setback in the US Senate for a proposed cryptocurrency regulation bill sent Coinbase shares down 10% and MicroStrategy lower by 5.4%.
In contrast, health-care software company Waystar rose 7.1% after Reuters reported it was considering strategic options, including a potential sale.
