By Sara Sjolin, MarketWatch

Dollar slips as FOMC prepares to kick off two-day meeting

Stock-index futures pointed to another round of all-time highs for Wall Street on Tuesday as investors awaited the start of a two-day meeting of Federal Reserve policy makers.

Futures for the Dow Jones Industrial Average inched up by 11 points to 22,310, while S&P 500 index futures climbed 1.80 points to 2,504.50. Nasdaq-100 Index futures added 4 points to 5,991.

The modest moves come a day after the Dow average notched its 40th record close of the year (http://www.marketwatch.com/story/dow-sp-500-line-up-for-fresh-records-to-start-the-week-2017-09-18), while the S&P 500 index ended at an all-time high for the 35th time in 2017. The Nasdaq Composite Index also rose, ending Monday at its second-highest close ever.

"The increasingly positive market sentiment remains on track as the Federal Reserve begins its two- day meeting today. This prospect could begin to pull traders to the sidelines over the next day and a half, but for now there is a risk-positive theme running through the markets," said Richard Perry, market analyst at Hantec Markets, in a note.

The Federal Open Market Committee is widely expected to say it will start reducing its $4.5 trillion portfolio of government securities when it releases its policy update on Wednesday. Rates are forecast to stay on hold, but traders will be looking hints if more hike are coming later in the year.#

Read:Fed's balance-sheet unwind will be moment of truth for financial markets (http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18)

"Analysts expect the Fed to keep the possibility of a December interest rate hike on the table," said Ipek Ozkardeskaya, senior market analyst, at London Capital Group, in a note.

"The probability of a December rate hike rose to 50%, too low to trigger a panic across the stock markets yet too high to be ruled out by the currency and money markets," she said.

The dollar gave up some of its recent gains ahead of the Fed meeting, with the ICE Dollar Index down 0.1% at 91.935 on Tuesday.

Other economic news: So-called housing starts slipped (http://www.marketwatch.com/story/housing-starts-dip-in-august-but-permits-surge-in-sign-of-optimism-2017-09-19)0.8% to an annual rate of 1.18 million in August from an upwardly revised 1.19 million in July. Permits to build new homes jumped 5.7% to a 1.3 million rate, matching the level in January and marking the second highest amount since 2007.

The import price index (http://www.marketwatch.com/story/cost-of-imported-goods-surge-in-august-led-by-fuel-2017-09-19)jumped 0.6% last month to match the biggest increase since January, largely due to higher oil prices.

See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Stock movers: Shares of Equifax Inc.(EFX) gave up 2.3% ahead of the bell, putting the credit-reporting company's stock on track to extend a huge selloff sparked by its disclosure of a massive data breach.

AutoZone Inc.(AZO) climbed 4% in thin premarket trade after the auto parts retailer reported earnings and revenue that beat forecasts (http://www.marketwatch.com/story/autozones-stock-rallies-after-profit-and-sales-rise-above-expectations-2017-09-19).

Shares of Valero Energy Corp. (VLO) could also be active after the company and Plains All American Pipeline LP(PAA) said late Monday they will drop a deal for Valero to acquire two California distribution terminals (http://www.marketwatch.com/story/valero-plains-all-american-drop-deal-after-california-lawsuit-2017-09-18) after interference from the state's attorney general.

Other markets: Asian markets closed mixed, while European stocks (http://www.marketwatch.com/story/european-stocks-slip-as-traders-wait-for-fed-rate-update-2017-09-19) were slightly lower.

Oil prices rose, while gold inched higher but most other metals declined.

(END) Dow Jones Newswires

September 19, 2017 09:01 ET (13:01 GMT)