U.S. stock futures opened slightly higher on Sunday night as investors eagerly anticipated the final Federal Reserve meeting of 2023, searching for signals on when central bankers may begin to cut interest rates.

Futures tied to the Dow Jones Industrial Average added 17 points, or 0.05%, signaling a cautious optimism in the market. Meanwhile, S&P futures gained less than 0.1%, while Nasdaq 100 futures hovered below the flatline.

The ongoing boom in equities is anticipated to continue this year, with investors increasingly optimistic about further gains due to recent diversification within the rally. The Magnificent 7 group of tech stocks has seen slower growth compared to this year's laggards such as health care and small-cap companies.

Closing Friday with a six-week winning streak, the S&P 500 and the tech-heavy Nasdaq Composite posted gains of 0.2% and 0.7% respectively, while the Dow remained flat for the week.

Investor sentiment has been boosted by the effective efforts of the central bank to tackle inflation, surpassing the expectations of many Fed officials and investors. The latest University of Michigan consumer sentiment survey, released on Friday, revealed a plunge in consumer fears over inflation in December, accompanied by a jump in consumer optimism.

During the Federal Reserve's policy meeting on Wednesday, Chair Jerome Powell is expected to maintain the key fed funds rate steady in the 5.25% - 5.5% range, where it has remained since July. Powell is also anticipated to reiterate his commitment to reducing inflation in his press conference on Wednesday.

Market expectations for a potential rate cut are already reflected in the CME Group's FedWatch tool, which indicates a 45% likelihood of a 0.25 percentage point rate decrease in March.

Market participants are also keeping an eye on key inflation data, which could influence market movements and the Fed's rate-cut decisions. The consumer price index for November is due to be released on Tuesday, while the producer price index is set for publication on Wednesday.

In the upcoming week, investors will also be focused on corporate earnings announcements. Oracle is scheduled to report on Monday, followed by Adobe on Wednesday and Costco Wholesale on Thursday.

With investors eagerly awaiting clues from the Federal Reserve meeting and monitoring important economic indicators, the outcome of this week's events will likely have a significant impact on the future direction of the U.S. stock market.