WOR - US Stock Futures Stall As Traders Await Fed Chair Powell's Decision; Analyst Sees S&P 500 Showing 'Signs Of Near-Term Top' | Benzinga
Investors remain cautious ahead of the Federal Reserve‘s interest rate decision, with stock futures on Wednesday hinting at a lower opening. Trading is expected to be subdued, mirroring the historical pattern on Fed decision days. Stocks may stagnate until the announcement is released. If the Fed’s economic projections (dot plot) align with market expectations, a buying spree could follow.
Weakness in bond yields and gold prices suggests the market anticipates a dovish Fed stance. However, Fed Chair Jerome Powell‘s comments in the press conference following the announcement could still influence markets. Several key earnings reports are also scheduled for today, both before and after the market opens.
Cues From Previous Session:
Overcoming initial anxieties, investors pushed stocks higher on Tuesday, buoyed by the prospect of a dovish Fed decision on Wednesday. The Dow Jones Industrial Average opened strong and remained mostly positive throughout the session, closing just below its daily high.
The Nasdaq Composite and S&P 500 initially dipped but quickly reversed course, entering positive territory by early afternoon and remaining there for most of the day. The S&P 500 even closed at a new record high.
Ten of the eleven S&P 500 sectors closed higher, with only communication services experiencing profit-taking declines. Energy, consumer discretionary, and utility stocks led the gains.
Index Performance (+/-) Value
Nasdaq Composite +0.39% 16,166.79
S&P 500 Index +0.56% 5,178.51
Dow Industrials +0.83% 39,110.76
Russell 2000 +0.54% 2,035.71
Analyst Color:
Market watchers have pushed back their expectations in the wake of last week’s hotter-than-expected inflation readings. Fund manager Louis Navellier said, “In the wake of a disastrous report on February wholesale inflation where food, energy, and good prices surged, any ...