U.S. futures are trending higher on Wednesday morning as investors keenly await the final decision from the Federal Reserve’s two-day policy meeting. Markets are expecting a 50-basis point rate cut at the FOMC (Federal Open Market Committee) meeting. Futures on the S&P 500 (SPX), Nasdaq 100 (NDX), and the Dow Jones Industrial Average (DJIA) were up by about 0.04%, 0.06%, and 0.08%, respectively, at 3:54 a.m. EST, September 18.
The previous session closed flat as investors remained confounded by the outcome of the Fed’s interest rate decision. Companies stand to benefit from rate cuts, as a lower interest rate backdrop improves their profitability. Also, individuals will be relieved as the pressure on their pockets reduces.
In major news, a Microsoft (MSFT) and Blackrock (BLK)-led group is launching an AI infrastructure fund. The group intends to raise up to $100 billion, including private equity and debt financing.
Meanwhile, the United Auto Workers (UAW) union is again threatening to stage a strike at automaker Stellantis (STLA) if the company does not live up to the promises made in the 2023 contract.
On the economic front, apart from the interest rate announcement, investors will be monitoring the Mortgage Applications data, Building Permits, and Housing Starts data. There are no important earnings releases scheduled for today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 3.649% at the time of writing. Further, the WTI crude oil futures are trending lower, hovering near $70.76 per barrel as of the last check.
Elsewhere, European markets are expected to open lower today as investors watch the UK’s inflation data for August. UK’s headline consumer price index (CPI) came in at 2.2%, the same as July and in line with expectations. Traders will also keenly await the Fed’s interest rate decision, as it will drive other major economies’ interest rate decisions. The Bank of England (BOE) is set to announce its interest rate decision later this week.
Asia Pacific Markets Trade Higher on Wednesday
Asia-Pacific markets trended higher today, as investors look forward to the U.S. Fed’s interest rate decision.
At the time of writing, Hong Kong’s Hang Seng index and China’s Shanghai Composite index were up by 1.37% and 0.36%, respectively, while the Shenzhen Component index rose 0.11%.
At the same time, Japan’s Nikkei and Topix indices moved higher by 0.49% and 0.38%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
