Here are five key things investors need to know to start the trading day:
1. Preparing for the Fed
The S&P 500 closed on Tuesday with little change as traders await the Federal Reserve’s crucial decision regarding interest rates. The broad-market index reached a record high earlier in the day but ended just 0.03% higher.
2. Expectations for Rate Changes
Federal Reserve meetings are typically predictable events, as policymakers often signal their intentions in advance. However, this time there is an element of uncertainty. Observers are fairly confident that a rate cut is coming, but opinions differ on whether it will be a traditional quarter-percentage-point reduction (25 basis points) or a more aggressive cut of 50 basis points.
3. Merger on the Horizon
Alaska Airlines and Hawaiian Airlines have received clearance to merge. The Department of Transportation announced on Tuesday that the two carriers can proceed with their $1.9 billion merger agreement, provided they maintain the value of their frequent-flyer miles programs and preserve several key routes.
4. What’s Next for Big Tech?
The volume of transactions in the technology sector has significantly declined, falling to $544 billion last year after peaking at $1.5 trillion in 2021, according to data from Dealogic. So far in 2024, tech mergers and acquisitions have reached $465 billion.
5. Snap’s Latest Innovation
Snap introduced the fifth generation of its augmented reality glasses, known as Spectacles, on Tuesday, following years of efforts to establish a foothold in the consumer hardware market.
Source (CNBC)
