As investors anticipate the Federal Reserve’s upcoming policy decision, U.S. stock futures have decreased since Monday morning.
The Dow Jones Industrial Average-related futures dropped 24 points, or 0.1%. Futures for the Nasdaq 100 and S&P 500 both decreased by about 0.2% and 0.3%, respectively.
Both the S&P 500 and the Nasdaq had losses at the close of the previous trading week, making it two weeks in a row. The Dow was able to complete the week with a 0.1% gain.
Investors generally believe that the Fed will maintain current interest rates at its policy meeting this week. However, traders will be closely watching to gain a better idea of the central bank’s stance on inflation moving forward.
According to Quincy Krosby, chief global strategist for LPL Financial, “how the Fed delivers the pause is critical for November and December rate expectations, but whether it’s given with a dovish or hawkish slant is what matters most for financial markets.”
According to traders’ predictions, there is only a 31% likelihood that the Fed will raise rates in November when it announces its rate decision on Wednesday. This is according to the CME Group’s FedWatch programme, which analyses prices in the fed funds futures market.
Source (CNBC)
