Wall Street was expecting a rate cut from the Federal Reserve after an aggressive multiyear raising campaign aimed at cooling heated inflation, which is why stock futures increased marginally on Wednesday.
A 0.2% increase, or 70 points, was made to futures linked to the Dow Jones Industrial Average. Both Nasdaq-100 and S&P 500 futures increased by 0.2% and 0.1%, respectively.
It is anticipated that at 2:00 PM ET, the Fed will announce its most recent policy agenda item. While traders disagree on the exact magnitude of the reduction, the central bank is likely to cut rates by at least a quarter of a percentage point.
A 65% possibility of a 50 basis point drop and a 35% chance of a 25 basis point move are priced in by traders.
Source (CNBC)
