U.S. stock futures fell on Wednesday while major averages rose as investors awaited the Federal Reserve’s latest policy decision.
Dow Jones Industrial Average Futures fell 40 points, or 0.1%, while S&P 500 Index Futures down 0.1%.Nasdaq 100 Futures teetering around the flat line.
The Fed is widely expected to keep interest rates unchanged at the end of its two-day policy meeting on Wednesday. However, investors will be scanning the dot plot for insight into the number and timing of rate cuts, with many expecting the central bank to begin cutting rates in June.
Some worry that a recent spate of hot inflation reports could result in even less rate cuts than the market expects. “The dot plot probably indicates we have another cut out of three,” Sanders said. “The question, though, is at what point does it hit the market given the resilience we’ve had in the market. I think ultimately, This is not only about the Fed’s response function, but also about the sustainability of economic growth conditions.”
Wall Street’s major benchmarks are having a positive trading day. 30 stocks Dow Chemical It rose 320 points, or 0.8%, its best single-day performance since February 22. S&P 500 Index rose about 0.6%, while Nasdaq Index Add about 0.4%.
Recent weakness in technology stocks has some investors wondering whether the rally in artificial intelligence is slowing as the rest of the market develops. Communications services, which includes Alphabet and Meta Platforms, were the only sectors in the S&P 500 to decline on Tuesday, with energy and utility stocks leading gains across the index.
“All else being equal, seeing this rotation and churn happening underneath the surface,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said on CNBC’s “Closing Bell” Not a bad thing.” “I think it sends a message about the resilience of the economy, which is why measures that have been effective have more of a cyclical bias.”
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