US futures were higher on Wednesday morning ahead of an expected interest rate rise this afternoon from the Federal Reserve.

Following a recent run of positive economic data, including the fastest quarterly pace of gross domestic product growth since 2014, inflation at target and a strong labour market, the US central bank is expected to pull the trigger on another interest rate increase today.

A 25 basis point increase will take the Fed’s policy range to between 2 per cent and 2.25 per cent. It will mark the third time in 2018 policymakers have raised interest rates, with one more increase still forecast by the end of the year.

Expectations for higher interest rates have been a key factor in pushing government bond yields higher over recent months.

On Wednesday, US Treasuries were rallying, though, with the yield on the benchmark 10-year down 1.7 basis points at 3.0852 per cent. Earlier this week, the 10-year yield crossed 3.1 per cent for the first time since May. Bond yields move inversely to price.

The dollar was firmer on Wednesday, but remains nearly 3 per cent below the 14-month high reached in August. The DXY index, which tracks the buck against a weighted basket of global peers, was up 0.2 per cent this morning at 94.314.

Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq 100 were each higher by 0.1 per cent.

Nike shares were down 2.4 per cent at $82.80 in pre-market trade this morning, and an implied level 60 cents higher than before the controversy surrounding their latest advertising campaign, which featured former NFL player Colin Kaepernick.

The sportswear maker beat market expectations for revenue and earnings when it reported first-quarter results after the closing bell on Tuesday, leading to a number of analyst upgrades today, although gross margin was slightly lower than Wall Street forecast.

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