WSM - US Stock Futures Indicate Flat Open After Mini-Relief Rally; Bitcoin Goes Past $73K While Gold Dulls: Analyst Stresses Need For Robust Earnings | Benzinga
After Tuesday’s relief rally that came after investors digested February inflation data, the mood has reverted to caution on Wall Street. Stock futures point to a flattish open on Wednesday. The absence of any major catalysts could increase indecision although traders may look forward to the reception to the 30-year bond auction, given the slight recovery in bond yields in recent sessions.
Strategists, meanwhile, are optimistic that the market would preserve the upward momentum, baking in expectations that the Federal Reserve has to pause sometime this year. Between now and the upcoming Wednesday’s Fed decision, stocks could mostly tread water before making a decisive move in either direction.
Cues From Previous Session:
U.S. stocks ended Tuesday’s session on an upbeat note as traders ignored the message relayed by the February inflation and the rise in bond yields. The major averages opened higher after consumer price inflation came in hotter than expected. Selling emerged immediately after, dragging the indices into negative territory in early trading.
The averages staged a remarkable recovery as commentary from economists after the data release suggested that the downward trend in underlying inflation is intact. After a V-shaped recovery in late-morning trading, they moved roughly sideways before ending notably higher.
The broader S&P 500 Index closed at a fresh record after hitting an intraday high earlier in the session, while the Nasdaq Composite and the Dow Industrials closed short of their respective records.
“Hopes remain that even though we continue to be far from the Fed’s 2% target they will still make cuts, believing that a lower Fed Funds rate will still keep sufficient pressure on inflation to move eventually towards 2%,” said fund manager Louis Navellier.
“Behind the curtain, there is undeniable political pressure to lower rates given soaring government debt ...