Fed's Decision Not to Cut Rates Stains Futures Red

With no hint that the Fed is going to cut interest rates before its March 20 meeting, the markets are searching for some kind of direction. Yesterday, that lack of direction led the major indices into the downside, and this morning, early morning futures action was indicating that they were going to stay there -- at least at the opening.

The S&P 500 futures on Globex lately were down 9 to 1233, about 9 points below fair value as calculated by TheStreet.com. The thinly traded Nasdaq 100 futures were down 22 to 1892, or about 20 points below fair value, also as calculated by TSC.

Europe's major indices were lower at midsession thanks to tech stocks, with France's CAC-40 sliding 70, or 1.3%, to 5298; Germany's Xetra Dax falling 95, or 1.5%, to 6114; and the U.K.'s FTSE 100 dropping 33, or 0.6%, to 5885.

American investors weren't the only ones depressed about not getting an interest rate cut until the FOMC meeting. Asian markets plunged dramatically on reports that an American intermeeting cut looked unlikely. Despite a surprise rate cut by the Bank of Japan, the country's Nikkei 225 sunk 202, or 1.57%, to 12,682 overnight -- a 15-year low. Meanwhile, Hong Kong's Hang Seng plunged 427, 2.9%, to 14,361.

For more on the world stock markets, check out TheStreet.com's global indices information.

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For Wednesday's postclose trading, see The Night Watch.