Stock futures operating sideways ahead of Fed decision
Stock futures hovering near flatline and Treasury yields rose as investors waited for the Federal Reserve's latest monetary policy decision.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Front of the opening clock joined futures for S & P 500 ( ES = F ) 0.03% or 0.75 points, like Dow futures ( YM = F ) rose 0.05%, or 1[ads1]2 points, while Nasdaq futures ( NQ = F ) increased 0.06%, or 4.25 points. "Data response time =" 12 "> Prior to the opening clock, futures for S & P 500 (ES = F) ended 0.03%, or 0.75 points, from 8:30 am to ET. Dow futures (YM = F) rose 0.05%, or 12 points, while Nasdaq futures (NQ = F) rose 0.06%, or 4.25 points.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Treasury yield was higher over the curve, with the return on 10- US dollar was slightly changed, with the dollar index ( DX-Y.NYB ) down one-tenth percent to 97.55. "data-response time =" 13 "> The Treasury yields were higher over the curve, with the return on the 10-year note up 2.6 basis points to 2.084%. The US dollar was slightly changed, with the dollar index (DX-Y.NYB) down one-tenth of the percent to 97.55.
The Federal Open Market Committee (FOMC) will publish a statement describing the latest monetary policy decision and assessment of the economy at 14.00 ET Wednesday. Fed leader Jerome Powell will give a press conference afterwards.
Fed's quarterly protocol update Wednesday will also shed light on the central bank's future monetary policy path. The chart shows the individual forecasts for each Fed policeman for the next few years. The last bullet point from March showed that 11 of the 17 officials expected the interest rates to remain unchanged through 2019. No one had then expected a cut.
But investors have since made their own predictions. From Wednesday morning, the markets were priced at almost 100% probability that a price swing would take place before the end of 2019, when global trade concerns have sprung up and threatened to prevent economic growth.
Federal Reserve Mayor Jerome Powell Speaks on a TV as a Manhattan Merchant on New York, February 27, February 27 , 2018. REUTERS / Lucas Jackson
For the June meeting, markets were priced at only a 24.2% likelihood that there would be a reduction to the target band of interest rates currently set at 2.25-2 , 50%. However, this probability rises to more than 80% for the July meeting.
<p class = "canvas-cano text-text Mb (1.0em) Mb (0) – sm Mt (0.8em) The Federal Reserve may lose patience on Wednesday ] " data-reactid = " 29 "> [Reader: [Reader: The Federal Reserve may lose" patience "on Wednesday ]
With this in mind, investors believe that Powell and his colleagues will use June policy statement and press conference to adjust their rhetoric and lay the foundations for easier monetary policy later this year.
"This meeting will present a delicate balancing act for the committee by recognizing that meetings between meetings point to a lesser view in the second half, but will not have enough information to agree on whether the slowdown is transient or persistent. "justin bezner, economist for Deutsche Bank, wroe in a note.
"While we don't expect the Fed to cut bets on this week's meeting, we believe the language of the meeting lineup, reduced forecasts in SEP [Summary of Economic Projections] and the tone of Powell's press conference will move in a certain discretion," he added.
The Fed decision comes after President Mario Draghi of the European Central Bank (ECB) on Tuesday gave a speech signaling further stimulus – or lighter monetary policy – would be justified despite further economic deterioration. The comments sent European stocks higher and the euro lower.
<p class = "canvas component canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text Read the latest finance and business news from Yahoo Finance " data-response time = "34"> Read the latest financial and business news from Yahoo Finance
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Emily McCormick is a reporter for Yahoo Finance Follow her on Twitter: @emily_mcck "data-response time =" 36 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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