Stock Futures Gain Ahead of Fed Meeting

Date:

U.S. stock futures edged up ahead of the Federal Reserve’s two-day policy meeting, which is expected to end with the central bank signaling a faster wind-down of its bond-buying program.

Futures for the S&P 500 rose 0.3% Tuesday. The index fell Monday, pulling the gauge back from a record high notched last week. Contracts for the tech-focused Nasdaq-100 gained 0.2% Tuesday, and futures for the Dow Jones Industrial Average added 0.3%.

Investors are watching to see if the uptick in Covid-19 cases and the new Omicron variant changes how quickly the Fed will wind down easy-money policies that have helped fuel this year’s stock rally when it concludes its meeting Wednesday. The central bank is expected to move more quickly to wind down its bond-buying program and signal that it will raise interest rates next year to curb inflation. 

“It’s a fairly challenging backdrop for the market,” said Hani Redha, a portfolio manager at PineBridge Investments. “Things have been fairly directionless in the lead-up to this. The market wants to see confirmation of what they’re going to do.” 

Investors are watching to see how quickly the Fed will wind down easy-money policies.



Photo:

Michael Nagle/Bloomberg News

The new variant is likely to weigh on the global economic recovery, as some countries implement measures to slow its spread, but is also likely to prolong the labor shortages and supply-chain issues that have stoked inflation, Mr. Redha added.

In premarket trading, shares of meme-stocks

GameStop

and

AMC Entertainment

continued recent falls, declining 1.7% and 5.5%, respectively. Both companies reported news last week that hurt their share prices, with GameStop posting a widening quarterly loss and AMC disclosing that its chief executive and chief financial officer had sold a combined $10.2 million of stock. Tesla shares edged down 0.8% premarket Tuesday after CEO Elon Musk sold more stock Monday.

In bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.433% from 1.423% Monday. Yields and prices move inversely. 

Brent crude futures, the benchmark in global oil markets, rose 0.8% to $74.96 a barrel. On Tuesday, the International Energy Agency said that Omicron’s emergence would “temporarily slow, but not upend, the recovery in oil demand.” 

Overseas, the Stoxx Europe 600 index added 0.4%. London-listed shares of

Rentokil Initial

fell 4.8% after the pest-control company said Tuesday that it would buy

Terminix Global Holdings

for $1.3 billion in cash and 643.3 million new Rentokil shares in a deal that values the U.S. firm at $6.7 billion.

Major stock indexes in Asia closed lower. Hong Kong’s Hang Seng contracted 1.3% and Japan’s Nikkei 225 shed 0.7%. China’s Shanghai Composite and South Korea’s Kospi each declined about 0.5%.

As the cost of groceries, clothing and electronics have gone up in the U.S., prices in Japan have stayed low.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Stock Futures Gain Ahead of Fed Meeting Source link Stock Futures Gain Ahead of Fed Meeting

The post Stock Futures Gain Ahead of Fed Meeting appeared first on Eminetra.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Sex Drive: How Do Men and Women Compare?

{"@context":"https://schema.org/","@type":"MedicalWebPage","mainEntityOfPage":"https://www.webmd.com/sex/features/sex-drive-how-do-men-women-compare","lastReviewed":"08/22/2013 00:00:00","reviewedBy":{"@type":"Person","name":"Brunilda Nazario, MD"},"about":"Healthy Sexuality","datePublished":"03/04/2009 00:00:00","headline":"Sex Drive: How Do...

Blink-182 Drummer Travis Barker Hospitalized With Pancreatitis

{"@context":"https://schema.org/","@type":"MedicalWebPage","mainEntityOfPage":"https://www.webmd.com/digestive-disorders/news/20220701/travis-barker-hospitalized-with-pancreatitis","lastReviewed":"nulldate","reviewedBy":{"@type":"Person"},"about":"Digestive Problems","datePublished":"07/01/2022 12:44:58","headline":"Blink-182 Drummer Travis Barker Hospitalized With Pancreatitis","author":{"@type":"Person","name":"Damian...

Our long-term 2022 Kia EV6 does not come with a charging cable

When testing Electric carOne item that I started to...

Swiss market ends reasonably high with slow buying

Despite spending many of the...