Suspense Reigns over Size of Fed Cut, - InvestingChannel

Suspense Reigns over Size of Fed Cut,

Stock futures rose slightly Wednesday as Wall Street anticipated the first Federal Reserve interest rate cut in four years. Gains were muted as uncertainty lingered over how big the easing will be from the central bank.

Futures for the Dow Jones Industrials gained 39 points, or 0.1% to 42,077.

Futures for the S&P 500 inched forward 4.75 points, or 0.1%, at 5,705.25.

Futures for the NASDAQ advanced 28.25 points, or 0.2%, to 19,704.

The Fed is expected to deliver its latest policy decision at 2 p.m. ET. The central bank is expected to lower rates by at least a quarter percentage point, but traders are divided over how big the reduction will be. CME Group’s FedWatch tool shows traders pricing in a 65% chance of a half-point cut and 35% odds of a quarter-point move.

Wednesday note.

The ushering in of a cutting cycle is expected to shore up a stalling economy and further boost an already strong market, with the S&P 500 at a record following an 18% gain this year. The benchmark has averaged gains of about 16% in the 12 months following the first cut, according to data from Canaccord Genuity.

In Japan, the Nikkei 225 took on 0.5% Wednesday, while markets in Hong Kong were closed for holiday.

Oil prices slid 64 cents to $70.55 U.S. a barrel.

Gold prices gained $11.60 to $2,604

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire