The Federal Open Market Committee will release its policy statement at 12:30 p.m. ET, followed by a press conference with Fed chair Ben Bernanke at 2:15 p.m. ET. Hopes have been running high for the central bank to announce a new round of bond buying, known as quantitative easing or QE3.
Ahead of the opening bell Thursday, the Labor Department reported initial jobless claims increased to 382,000 for the week ended September 8, up 15,000 from the week earlier, and worse than expected.
The U.S. Bureaus of Labor Statistics reported producer prices rose 1.7% in August, marking the largest monthly jump since June 2009 and higher than expected.
Anticipation of the Fed's decision weighed on markets around the world. European markets were mixed in afternoon trading. Asian markets were also mixed as markets closed Thursday ahead of the news. The Hang Seng ended in the red, while the Shanghai Composite and Japan's Nikkei edged higher.
The euro continued to rally against the U.S. dollar, sending the currency above $1.29 for the second day in a row. At the same time, investors shifted into U.S. Treasuries, pushing the yield on the 10-year note to 1.74% from 1.76% late Wednesday.
Oil prices held steady Thursday despite mounting pressure in the Mideast, rising to $97.37 a barrel. Brent crude, Europe's benchmark, edged up to $116.12 a barrel.
Companies: Shares of Facebook ( continued to move higher in premarket trading, one day after hitting a 1-month high. )Facebook's stock has gained nearly 13% over the past five days, but at $21, it's still a far cry from its IPO price of $38.
Aerospace companies BAE Systems ( and )European Aeronautic Defence & Space Co (. said they were in merger talks Wednesday, sending shares of both companies higher in after-hours trading. )
Retailer Pier 1 Imports ( reported strong second-quarter earning Thursday morning and raised its full-year guidance. Shares of the home furnishing company edged higher on the news. )
Commodities: Gold futures for December delivery rose $3.6 to $1,737.30 an ounce.
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.36%||4.24%|
|15 yr fixed||3.39%||3.26%|
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