Last Updated: 4:05 PM EST
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Stock indices finished today’s trading session in the green after the Federal Reserve kept interest rates steady. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.15%, 0.89%, and 1.03%, respectively.
Furthermore, the U.S. 10-Year Treasury yield remained relatively flat at 4.28%. On the other hand, the Two-Year Treasury yield decreased, as it hovers around 4.61%.
Compared to yesterday, the market is pricing in a higher chance of a rate cut in June. In fact, the market’s expectations for a rate in the range of 5% to 5.25% increased to 68.3% compared to yesterday’s expectations of 55.6%.
First Published: 5:03 AM EST
U.S. futures remained steady on Wednesday morning as investors looked ahead to the Federal Open Market Committee’s (FOMC) decision on interest rates. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.02%, 0.05%, and 0.01%, respectively, at 4:06 a.m. EST, March 20.
Although the Federal Reserve is expected to keep the interest rate steady, any cues on the Fed’s future course will drive market movement. Fed Chair Jerome Powell’s speech will take prime focus today as he will share insights into the U.S. economy’s health. The federal funds rate is currently at a 22-year high, between 5.25% and 5.50%.
The recent hot inflation data has caused increased uncertainty about the timing of rate cuts, with some economists predicting no rate cuts in 2024. Joseph Davis, Chief Global Economist at Vanguard, cautions that a premature interest rate cut could result in inflation above the Fed’s target in 2025.
On the corporate earnings front, several companies, including BioNTech (BNTX), General Mills (GIS), PDD Holdings (PDD), Micron (MU), Chewy (CHWY), Five Below (FIVE), and KB Home (KBH), are expected to release quarterly results today.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.28%. At the same time, WTI crude oil futures trended lower, hovering near $83.06 per barrel as of the last check.
Elsewhere, European indices are expected to open lower on Wednesday morning as markets await the Federal Reserve’s monetary policy decision.
Asia-Pacific Markets Ended Higher on Wednesday
Asia-Pacific indices ended today’s session in the green as the markets looked past the Bank of Japan’s move to raise interest rates for the first time in 17 years. Also, the investors awaited the U.S. central bank’s policy decision.
Hong Kong’s Hang Seng index rose by 0.17%. Also, China’s Shanghai Composite and Shenzhen Component indices ended higher by 0.55% and 0.21%, respectively.
Meanwhile, Japanese markets were closed today for the Vernal Equinox holiday.
Interested in more economic insights? Tune in to our LIVE webinar.
