Stock futures slip as investors gear up for start of Fed policy meeting: Live updates
What are the expected outcomes of the Federal Reserve policy meeting that began on Tuesday?
The Federal Reserve policy meeting that began on Tuesday is expected to conclude on Wednesday with an interest rate policy decision and a subsequent press conference featuring Federal Reserve Chair Jerome Powell. Investors are largely pricing in that the borrowing rate will remain unchanged, with Fed funds futures indicating virtually no chance of a cut at this week's meeting, according to CME's FedWatch Tool. The focus will be on any signals from the Federal Reserve about the potential for future rate hikes or cuts, as well as their assessment of the current economic conditions and inflation.
How did the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite perform on the day before the Fed policy meeting?
On the day before the Fed policy meeting, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite had mixed performances. The Dow Jones Industrial Average lost 60 points, or 0.15%. S&P 500 futures and Nasdaq 100 futures both lost roughly 0.1%. The S&P 500 and Nasdaq Composite rose modestly to notch new record closes, while the Dow inched higher by nearly 0.2%.
What specific factors contributed to the decline in stock futures on Monday night as reported?
The decline in stock futures on Monday night was attributed to investors' anticipation of the Federal Reserve's policy meeting that started on Tuesday. The market was cautious as they awaited the outcome of the two-day meeting, which would conclude with an interest rate policy decision and a press conference featuring Federal Reserve Chair Jerome Powell. Although investors were not expecting any changes in the borrowing rate, the uncertainty surrounding the policy announcement led to a muted performance on Wall Street. Additionally, investors were also looking forward to analyzing small business data due out on Tuesday and the consumer price index reading for May expected on Wednesday.