TSLA - S&P 500 Nasdaq Set For Modestly Higher Open As All Eyes Turn To Fed's Decision | Benzinga
Stocks remain in rally mode, with early Wednesday futures indicating a modestly higher opening. The Federal Reserve’s rate decision day is here, creating a fidgety mood until the post-meeting policy statement is released. While the market anticipates rate cuts in early 2024, doubts persist about the Fed reversing rate hikes so soon, given that inflation, though slowing, remains above the 2% target.
A status quo stance from the Fed seems likely, and investors will closely scrutinize the wording of the post-meeting statement and the dot-plot curve. The key question is whether Fed Chair Jerome Powell leaves room for rate cuts in the new year.
Cues From Previous Session
In Tuesday’s trading, the November inflation report indicated moderating pricing pressure, allowing major averages to extend their gains. Initial selling triggered by a larger-than-expected monthly increase in inflation was overcome as core monthly and annual rates aligned with estimates. The Dow Industrials and S&P 500 reached their highest closing levels since January 2022, while the Nasdaq Composite hit its best level since March 29, 2022, marking a four-session advance.
However, small-cap stocks, represented by the Russell 2000 Index, underperformed, experiencing a modest decline. In the S&P sector classes, financial and IT stocks showed notable strength, while energy, real estate, and utility stocks ended lower.
US Index Performance On Tuesday
Index Performance (+/-) Value
Nasdaq Composite +0.70% 14,533.40
S&P 500 Index +0.46% 4,643.70
Dow Industrials +0.48% 36,577.94
Russell 2000 -0.13% 1,881.27
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The Fed ...