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31/07/24
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US Stocks Higher Before Decision by Fed
On Wednesday, U.S. stock futures were higher due to optimism the Federal Reserve will pave the route for a rate cut in September, overshadowing lower-than-expected earnings from Microsoft.
The Nasdaq 100 Futures climbed 330 points or 1.9%, the S&P 500 Futures gained 65 points, or 1.2%, and the Dow Jones Futures rose 25 points, or 0.1%.
The focus is on the Federal Reserve as the U.S. central bank ends its policy-setting meeting.
Although it is widely expected the Fed will maintain its benchmark overnight interest rate in the current range of between 5.25% and 5.50%, investors are expecting policymakers to lay the groundwork for a rate cut in September.
Futures are fully pricing in a 0.25% cut in September, with a small probability of a reduction of 0.5%, and have 0.66% of easing priced in by the end of the year.
The NASDAQ Composite and the S&P 500 are on track to end the month down, with the form seen losing more than 3%.
The Dow Jones Industrial Average is however on target to end the month more than 4% higher, as the market moved out of the major tech stocks into companies that are more cyclically oriented.
Investors will also be evaluating quarterly earnings reports from several influential companies.
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