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Futures up: Dow 0.20%, S&P 500 0.24%, Nasdaq 0.18%

Dec 18 (Reuters) - U.S. stock index futures were higher

on Wednesday, as traders waited for the Federal Reserve's final

rate decision of the year and signals on whether policymakers

will take a more cautious stance in 2025.

The Fed is widely expected to reduce interest rates by 25

basis points at its meeting. The announcement is expected at 2

p.m. ET on Wednesday.

With a rate cut broadly priced in, the Fed's summary of

economic projections (SEP), which includes the "dot plot" of

rate projections, and comments from Chair Jerome Powell will be

in focus for indications on the rate path in 2025.

"The prospect of fiscal stimulus among other promised

policies by U.S. President-elect Donald Trump will, in our view,

force some scaling back in expected rate cuts included in dot

plot projections," ING analysts said, adding they still expected

a 25 basis point cut at the meeting.

"We doubt the Fed will derail from a generally cautious

stance on guidance."

Wall Street's main indexes had dipped in Tuesday's session,

with the Dow notching its ninth straight daily decline, its

longest losing streak since February 1978, as markets

increasingly look for a more hawkish Fed next year as strong

growth and persistent inflation could limit the case for steady

rate cuts.

U.S. Treasury yields have ticked higher as Fed expectations

change, with the 10-year yield up past 4.4%.

Most rate-sensitive megacap stocks ticked higher in

premarket trading, with AI giant Nvidia ( NVDA ) up over 3%

after hitting an over two-month low on Tuesday.

Tesla, meanwhile, dropped 2.8% after rising over

14% in the last three sessions.

Dow E-minis were up 89 points, or 0.2%, S&P 500

E-minis were up 14.25 points, or 0.24% and Nasdaq 100

E-minis were up 39.25 points, or 0.18%.

Still, despite some jitters over future Fed policy, stocks

are on track to end the year strong with the S&P 500 up nearly

27%, the Nasdaq up nearly 34% and the Dow up over 15%.

Crypto-focused stocks slipped as bitcoin fell 2%.

MARA Holdings ( MARA ) was down 1.8% and Riot Platforms ( RIOT )

fell 2.4%.

Birkenstock ( BIRK ) edged lower after the company forecast

fiscal 2025 revenue growth below market expectations.