Equity futures were flat in overnight trading after major indices recovered and oil prices fell below $100 a barrel ahead of Wednesday’s Federal Reserve meeting.
Dow Jones Industrial Average futures fell 40 points, while S&P 500 futures fell 0.1% and Nasdaq 100 futures were flat.
The gains came ahead of a critical meeting of the Federal Reserve on Wednesday where the agency is widely expected to raise interest rates by a quarter-point, the first hike since 2018. Observers also expect the central bank to issue a new quarterly forecast that could indicate another five or six walks this year.
“My guess is it’s going to sound a little more aggressive than people want it to sound, and that’s going to be a little hard to digest, especially in the fixed income markets,” David Zervos, chief market strategist at Jefferies told CNBC’s “Closing Bell” on Tuesday. . “I think the stock market might digest it a little better, but it’s going to be a tough job.”
The Fed is expected to release an interest rate decision and economic projections at 2 p.m. Wednesday, followed by a briefing from Fed Chair Jerome Powell.
Meanwhile, oil prices cooled on Tuesday, falling below $100 after hitting a multi-year high of $130 earlier this month, while commodities like gold, which have been volatile in recent days, fell 1.59%.
The US and global oil benchmarks both fell below $100 a barrel, with West Texas Intermediate and Brent crude falling 6.4% and 6.5% respectively. The slump put pressure on some energy stocks, including Exxon and Chevron, which fell about 6% and 5% on Tuesday.
In regular trading on Tuesday, the Dow Jones Industrial Average gained 599 points, or 1.8%, while the S&P 500 rose more than 2.1%, breaking a three-day losing streak. Meanwhile, the tech-heavy Nasdaq Composite rose about 2.9%.
US stocks traded higher on Tuesday as investors react positively to a ‘Goldilocks’ mix of economic reports (lower PPI and eroding Empire survey) and another sharp drop in oil prices – all suggesting the path to an ongoing high. inflation may be less certain than some think,” Goldman Sachs analyst Chris Hussey wrote in a note Tuesday.
Tuesday’s market rally was broad-based, led by sharp gains in technology stocks. Microsoft was up nearly 4%, while chipmakers Nvidia and Advanced Micro Devices were up about 8% and 7%. Peloton rose 12% after Bernstein began covering the stock with an “outperform” rating, and Coupa Software plunged 19% on a weaker-than-expected outlook.
Investors continued to monitor the lingering situation in Ukraine on Tuesday, when Kiev announced a 35-hour curfew after Russian missile strikes hit some residential buildings. Meanwhile, President Joe Biden signed a government financing bill that included $13.6 billion in aid to Ukraine.
Some European leaders also announced they will visit Ukraine to meet with the country’s president and prime minister, while Russia is expected to default on its debts for the first time in decades as it approaches Wednesday’s deadline for two payments.
Traders continued to monitor the situation in China, where one of the country’s largest manufacturing hubs has closed due to the rising number of Covid-19 cases.
Investors will watch on Wednesday as Ukrainian President Volodymyr Zelenskyy addresses Congress and await economic data, including the February retail sales report.
This post US stock futures are just ahead of Wednesday’s Fed meeting was original published at “https://www.cnbc.com/2022/03/15/stock-market-futures-open-to-close-news.html”