SPY - Nasdaq S&P 500 Set To Open Higher Ahead Of FOMC Minutes Producer Price Inflation Data: Why This Analyst Braces For Better Market Performance Through Year-End | Benzinga
Stock futures traded higher on Wednesday as buying momentum gradually builds amid hopes that the Federal Reserve may announce a pause at the month-end’s rate-setting meeting. Futures sustained these gains, even in light of Fed Governor Michelle Bowman suggesting that more rate hikes may be necessary to combat inflation.
Traders are now looking forward to additional Fed speeches and the release of the minutes from the September Fed meeting scheduled during trading hours. The producer price inflation report for September, falling bond yields, and concerns about the upcoming earnings season are also on the minds of market participants.
Cues From Tuesday’s Trading:
On Tuesday, more Fed officials hinted at a potential pause, leading to higher openings and morning rallies in the major indices. After some retracement in mid-session, the averages engaged in a consolidation phase for the remainder of the day, closing moderately higher.
The Nasdaq Composite, S&P 500, and Dow Industrials Average posted gains for the third consecutive session, achieving their best levels in about three weeks.
Small-cap stocks, which had been underperforming in recent sessions, rallied strongly, with the Russell 2,000 Index erasing year-to-date losses.
Most sectors advanced, with the exception of the energy sector, and consumer, material, and utility stocks led the gains.
Index Performance (+/-) Value
Nasdaq Composite +0.58% 13,562.84
S&P 500 Index +0.52% 4,358.24
Dow Industrials +0.40% 33,739.30
Russell 2000 +1.14% 1,775.95
Analyst Color:
Given a tough September that capped off a difficult third quarter, the solid economic fundamentals, and improving seasonal factors, Commonwealth Financial Network Chief Investment Officer Brad MacMillan expects better results for the market through the end of the year.
The analyst expects the month of October and the fourth quarter to be more mixed for the economy. While job growth remains strong, external factors such ...