Skip to main content

US Futures Indication I Before The Bell I CNBC I Stocks' comeback rally set to pause as traders await the Fed rate decision

Fred Imbert, Silvia Amaro



U.S. stock index futures were little changed on Wednesday morning as investors waited for the Federal Reserve’s latest decision on monetary policy.
Around 7 a.m. ET, Dow Jones Industrial Average futures were up just 6 points, indicating a gain of 29 points. Futures on the S&P 500 and Nasdaq 100 were also flat.
The Fed is scheduled to deliver its decision at 2 p.m. ET. The central bank is not expected to make any changes in terms of monetary policy, but investors will look for clues on whether the Fed will cut rates later this year. Fed Chair Jerome Powell will hold a news conference after the announcement.
Traders are pricing in easier monetary policy as soon as July. They are also betting on rate cuts coming in September and December, according to the CME Group’s FedWatch tool.
“The bottom line with today’s FOMC statement and Powell press conference is whether they confirm the markets expectations for a rate cut (currently at 82%) in July or will we hear more about patience that tries to shift those odds closer to 50%, thus giving the Fed more independence and optionality instead of their current position of being cornered and bullied by the market,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note.
Stocks have not fared well in recent Fed days. The S&P 500 has fallen in nine of the past 10 Fed days, according to Bespoke Investment Group.
Expectations of lower rates helped the market rebound this month after a torrid performance in May. The S&P 500, Dow and Nasdaq were all up at least 6% in June entering Wednesday’s session.
Those expectations increased amid lingering trade worries and weaker economic data.
The Fed’s meeting comes after Bloomberg News reported the White House looked for a way to demote Powell earlier this year. Larry Kudlow, director of the National Economic Council, told reporters Tuesday that Trump is not planning to demote Powell, however.
Still, when asked Tuesday whether he wants to remove Powell from his position, Trump said: “Let’s see what he does.”
There’s a special focus on the outcome of the Federal Reserve meeting Wednesday. Not only are traders are keen to understand the chances of rate cuts this year, but they are also interested to know if President Donald Trump has any influence on the central bank.

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in