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* Fed policy decision expected at 2:00 p.m. ET
* FedEx tumbles 11%
* Adobe down after tepid revenue forecast
* U.S. housing starts jump to 12-year high in August
* Futures down: Dow 0.07%, S&P 0.10%, Nasdaq 0.12% (Adds comment, details; update prices)
By Medha Singh
Sept 18 (Reuters) - Wall Street was set to open lower on Wednesday, pressured by FedEx’s profit warning, while investors waited for the Federal Reserve’s decision on interest rates in what has been a rocky week for global markets.
FedEx Corp, an economic bellwether, fell about 11% in premarket trading as strong competition from Amazon.com Inc added to woes from the U.S.-China trade war, hitting the package delivery company’s quarterly profit.
The Federal Reserve is expected to lower interest rates by a quarter percentage point for the second time in three months and provide clues on whether further monetary easing would be in order.
But a deep divide among policymakers has seen traders abandon all bets on a third reduction this year. The Fed’s policy statement is due at 2:00 p.m. ET (1800 GMT) followed by Chair Jerome Powell’s address a half hour later.
“The focus is going to be on the policy statement, specifically whether or not he gives any indication if this is a shift in policy or another mid-cycle rate cut,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
Shares of interest-rate sensitive lenders Bank of America Corp and JPMorgan Chase & Co slipped about 0.5%.
The wider banking index had closed down 0.6% on Tuesday in anticipation of the rate cut and after an unexpected squeeze on short-term money market borrowing costs.
Expectations of lower rates have spurred a Wall Street rally this year, with the benchmark S&P 500 now less than 1% below its all-time high.
Equity markets came under pressure on Monday after attacks on Saudi Arabia’s largest oil refinery sparked concerns about a supply shortage, leading to a spike in oil prices. However, a reassurance by Saudi Arabia that it would quickly restore full production calmed investor nerves.
At 9:05 a.m. ET, Dow e-minis were down 18 points, or 0.07%. S&P 500 e-minis were down 3 points, or 0.1% and Nasdaq 100 e-minis were down 9.25 points, or 0.12%.
Adobe Inc fell 3.1% after the Photoshop software maker forecast tepid revenue for the current quarter.
General Mills Inc dropped 0.5% after missing quarterly sales expectations, hit by weak demand for its yogurt and snacks in the U.S domestic market.
Latest data showed U.S. homebuilding surged to more than a 12-year high in August, suggesting that lower mortgage rates were finally providing a boost to the struggling housing market. (Reporting by Medha Singh and Amabar Warrick in Bengaluru; Editing by Anil D’Silva)