After ending the previous session mostly lower, stocks are likely to move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Traders may look to pick up stocks at somewhat reduced levels following yesterday’s weakness, which saw the Dow close lower for the ninth consecutive session.
The blue chip index matched its longest losing streak since 1978, slumping to its lowest closing level in almost a month.
Early trading activity is likely to be somewhat subdued, however, as traders look ahead to the Federal Reserve’s monetary policy announcement this afternoon.
The Fed is widely expected to continue lowering interest rates, with CME Group’s FedWatch Tool currently indicating a 98.8 percent chance of another quarter point rate cut.
Traders are subsequently likely to pay closer attention to the accompanying statement as well as officials’ latest economic projections, including their forecasts for rates.
Recent data showing inflation remains sticky has led to some worries the Fed will lower rates slower than previously anticipated next year.
After coming under pressure early in the session, stocks saw continued weakness throughout the trading day on Tuesday. The tech-heavy Nasdaq pulled back off Monday’s record closing high, while the Dow closed lower for the ninth straight session for the first time since 1978.
The major averages climbed off their worst levels going into the close but remained in the red. The Dow slid 267.58 points or 0.6 percent to 43,449.90, the Nasdaq dipped 64.83 points or 0.3 percent to 20,109.06 and the S&P 500 fell 23.47 points or 0.4 percent to 6,050.61.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slumped by 0.7 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.
Meanwhile, European stocks are seeing modest strength on the day. While the German DAX Index is up by 0.2 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.’s FTSE 100 Index is just above the unchanged line.
In commodities trading, crude oil futures are climbing $0.71 to $70.79 a barrel after falling $0.63 to $70.08 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,661.70, down $0.30 compared to the previous session’s close of $2,662. On Tuesday, gold slipped $8.
On the currency front, the U.S. dollar is trading at 153.87 yen compared to the 153.46 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0491 compared to yesterday’s $1.0491.
Business News
U.S. Stocks May Move Back To The Upside In Early Trading
2024-12-18 13:50:03
