Futures were flat in overnight trading after major indexes recovered and oil prices dipped below $100 a barrel ahead of Wednesday’s Federal Reserve meeting.
Dow Jones Industrial Average futures fell 40 points, while S&P 500 futures fell 0.1% and Nasdaq 100 futures were flat.
The increase comes ahead of a key Federal Reserve meeting on Wednesday, where the agency is expected to raise interest rates by a quarter, the first increase since 2018. Watchers are also expecting the central bank to come up with a New quarterly forecasts may indicate five or six more increases This year.
“My guess is it’s going to sound a little more hawkish than what people want, and that’s going to be a bit difficult to digest, especially in the region,” David Zervos, chief market strategist at Jefferies told CNBC. fixed income markets”. Bell” on Tuesday. “I think the stock market can digest it a little better, but it’s going to be hard to swallow.”
The Fed is expected to release rate decision and economic forecasts at 2 p.m. on Wednesday, followed by a briefing from Federal Reserve Chairman Jerome Powell.
Meanwhile, oil prices cooled on Tuesday, drops below $100 after topping for many years high $130 at the start of this month, while commodities like gold, which has been volatile in recent days, fell 1.59%.
U.S. and global oil benchmarks are both below $100 a barrel, with West Texas Intermediate and Brent crude down 6.4% and 6.5%, respectively. The redundancy put pressure on a number of energy stocks, including Exxon and Chevrondown about 6% and 5% on Tuesday.
In normal trading on Tuesday, the Dow Jones Industrial Average rose 599 points, or 1.8%, while the S&P 500 gained more than 2.1% and broke out. three-day losing streak. Meanwhile, the tech-heavy Nasdaq Composite is up about 2.9%.
“US stocks are trading higher on Tuesday as investors reacted positively to a combination of ‘Goldilocks’ economic reports (lower PPI and eroding Empire survey) and a another big drop in oil prices – all suggest that the path to sustained high inflation may be less certain Some think,” Goldman Sachs analyst Chris Hussey wrote in a note today. Tuesday.
Tuesday’s market rally was broad-based, led by strong gains in technology stocks. Microsoft increased by nearly 4%, while chip manufacturers Nvidia and Advanced Microphone Device about 8% and 7% respectively. Peloton 12% increase after Bernstein start covering stocks with “better” ratingsand Coupa software plummeted 19% due to a weaker-than-expected outlook.
Investors continued to monitor the unfolding situation in Ukraine on Tuesday, as Kyiv announced a 35-hour curfew after Russian missiles hit several residential buildings. Meanwhile, President Joe Biden sign a government The funding bill includes $13.6 billion in aid to Ukraine.
Several European leaders also announced they would be visiting Ukraine meets the country president and prime minister, while Russia is expected to default give for the first time in decades as it nears the deadline on Wednesday for the two payments.
Traders continue to monitor the situation in China, where one of the The country’s largest manufacturing centers have closed amid the growing number of Covid-19 cases.
Investors will watch Ukrainian President Volodymyr Zelenskyy address Parliament on Wednesday and await economic data, including retail sales reports for February.
