Last Updated: 4:25 PM EST
Stock indices finished today’s trading session mixed as investors await the Fed’s interest rate decision. The S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.13% and 0.55%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.47%. Furthermore, the U.S. 10-Year Treasury yield decreased to 3.62%, while the Two-Year Treasury yield also slipped, as it hovers around 3.56%.
Earlier today, the Federal Reserve Bank of New York released its Empire State Manufacturing Index report, which measures the relative level of general business conditions in New York State based on a survey of 200 manufacturers. A level above 0.0 indicates improving conditions, and below indicates worsening conditions.
Today’s report came in at 11.5, which was a significant beat compared to expectations of -4.1. This follows last month’s print of -4.7. It’s worth noting that over the past 12 months, conditions only improved in two of those months.
First Published: 3:38 AM EST
U.S. futures were relatively unchanged on Monday morning as investors looked forward to the Federal Reserve’s policy meeting this week. The central bank is expected to cut interest rates for the first time since 2020, marking a significant shift in monetary policy. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.2%, 0.06%, and 0.02%, respectively, at 3:02 a.m. EST, September 16.
Interestingly, the bullish momentum pushed the S&P 500 and Nasdaq Composite to their fifth consecutive winning session, with both indexes achieving their best performances of the year. The S&P 500, the Nasdaq, and the Dow Jones have risen by 4.02%, 5.95%, and 2.6%, respectively.
These gains reflect growing optimism that a rate cut will lower borrowing costs for businesses, enhance earnings growth, and stimulate the economy. The Federal Reserve’s policy meeting is set for Tuesday and Wednesday, with a 25-basis point rate cut anticipated as the most likely outcome. However, a more aggressive 50-basis point cut remains a possibility.
Apart from the Fed’s meeting outcome, investors are also keeping an eye on other key economic reports. August Retail Sales and Industrial Production data points are scheduled for release on Tuesday. Additionally, political developments in the United States are being closely monitored following another apparent assassination attempt on former President Donald Trump.
Moving on, this week’s corporate earnings calendar remains light, with only a handful of companies reporting their quarterly numbers. General Mills (GIS), Darden Restaurants (DRI), FedEx (FDX), and Lennar (LEN) are slated to release results this week.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.638% at the time of writing. In contrast, the WTI crude oil futures are trending higher, hovering near $68.99 per barrel as of the last check.
Elsewhere, European markets are expected to open higher on Monday as investors eagerly await interest rate decisions from the U.S. Federal Reserve and the Bank of England later this week.
Hong Kong Market Traded Higher on Monday
At the time of writing, Hong Kong’s Hang Seng index was up 0.02%. The upside comes as investors look ahead to the U.S. central bank’s interest rate decision.
Investors should note that China’s market remained closed today for the Mid-Autumn festival, while Japan observed Respect for the Aged Day.
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