NEW YORK (Reuters) - Stock futures rose on Wednesday, setting Wall Street up for a sixth day of gains, as investors anticipated the U.S. Federal Reserve will announce a fresh stimulus plan to support the economy at the end of a two-day monetary policy meeting.
The Fed is expected to unveil a new round of bond buying later on Wednesday to boost a fragile economic recovery threatened by political wrangling over the government's budget. The monetary policy committee's decision is expected around 12:30 p.m. ET.
"I think the market has already discounted that the Fed is going to announce more stimulus, so what's more important is what Chairman Bernanke says, which may give us clues on economic activity going forward," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"We might see a bit of selloff after Bernanke's comments, but we've been up for five straight days, so that shouldn't be surprising."
Negotiations intensified to avert the "fiscal cliff" - tax hikes and spending cuts that kick in early in 2013 - ahead of a year-end deadline as President Barack Obama and U.S. House of Representatives Speaker John Boehner spoke by phone on Tuesday after exchanging new proposals.
BlackRock, one of the world's biggest asset managers, expects the S&P 500 to scale new heights in 2013, with the broad measure of U.S. stocks reaching 1,600 by the end of the year. That's a gain of more than 12 percent from current levels and would surpass the index's previous peak of 1,576.09 set in 2007.
On the macroeconomic front, import and export price data is due at 8:30 a.m. ET. Economists in a Reuters survey expect import prices edged down by 0.5 percent last month, while export prices remained flat.
S&P 500 futures rose 3.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 22 points, and Nasdaq 100 futures added 7.75 points.
India's government announced an inquiry into lobbying practices by Wal-Mart Stores Inc.
Costco Wholesale Corp
Sprint Nextel Corp
U.S. stocks rose on Tuesday, led by technology companies. The S&P 500 closed at its highest since Election Day on November 6.
(Editing by Bernadette Baum)
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Stock futures gain as investors anticipate fresh Fed stimulus