An easing of US monetary policy and bond yields would give a boost to all types of investments.
The main indices of Wall Street rise this Wednesday waiting to know the latest forecasts of the Federal Reserve about the evolution of interest rates.
He S&P 500 rises 0.3%, continuing a quiet streak this week in which markets have made few major moves ahead of the Fed’s conclusion. Dow Jones Industrial Average rises 0.2%, to 34,600 and the Nasdaq lor does by 0.3%.
The consensus among operators is that The Federal Reserve will say in the afternoon that it keeps its main interest rate stable. The question is what Fed officials will say in the updated projections they are publishing about where they see interest rates heading in the next years.
Will they include yet another hike this year, after already taking the Fed’s key rate to its highest level in more than two decades? Will they signal as many rate cuts in 2024, which can soar prices for stocks and other investments, as traders expect?
Wall Street: the key data
These questions are clue because we still don’t knowWhen will the Federal Reserve feel confident enough that inflation is returning to its 2% target? to stop raising rates. Inflation is moderating considerably from its peak above the 9% last year, but the recent rebound in oil prices has complicated the trajectory. Last month it accelerated to 3.7%.
Meanwhile, Treasury yields fell ahead of the Federal Reserve’s announcement. However, they remain near their highest levels in many years, with the Federal Reserve expected to keep rates higher for longer to quell inflation. The 10-year Treasury yield fell to 4.32% from 4.37% on Tuesday, near its highest level since 2007.
An easing of US monetary policy and bond yields would give a boost to all types of investments. Some of the most beneficiaries tend to be high-growth companies, and technology stocks have fluctuated especially abrupt with rate expectations.
Source: Ambito
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