Trading activity in US stocks is underway, with market participants keenly awaiting the Federal Open Market Committee (FOMC) rate decision, scheduled for 2 PM ET. While there is a general consensus expecting no change in rates, the real focus lies on the accompanying statement, comments from Fed Chair Powell, and the updated forecasts for GDP, inflation, employment, and interest rates. This breadth of information is poised to significantly influence market dynamics. The impact on the markets will largely hinge on whether the Fed's stance and projections lean more towards dovish (favoring lower rates to stimulate the economy) or hawkish (unchanged for longer), relative to the current market expectations which are tilted towards a more dovish perspective.
A snapshot of the stock indices currently shows:
- Dow Industrial Average -42.24 points or -0.12% at 36535.71. The Dow is around 1% away from its all-time high.
- S&P index +3.23 points or 0.07% at 4646.92
- Nasdaq index is up 44.61 points or 0.31% at 14578.01
Looking at the US yield curve, rates are lower ahead of the rate decision. US PPI data was a bit weaker this morning:
- 2- year yield 4.696% -3.4 basis points
- 5-year yield 4.193%, -3.4 basis points
- 10-year yield 4.171% -3.4 basis points
- 30-year yield 4.277% -2.6 basis points.
In other markets,
- Crude oil is up around $0.50 at $69.20
- Gold is up $3.40 or 0.17% of $1982.73
- Bitcoin is trading at $41,383 little higher than the early US trading levels
