Stock futures were flat ahead of key Fed policy decisions

Stock futures were little changed Tuesday night as investors braced themselves for the Federal Reserve’s latest policy decision at the end of Wednesday’s meeting.

Futures tied to the Dow Jones industrial average were 10 points lower. S&P 500 futures and Nasdaq 100 futures were flat-lined.

In regular trade, major stock averages ended the day lower after September jobs data showed a resilient labor market. The Dow fell 79 points, or 0.2%. The S&P 500 lost 0.41%, and the Nasdaq Composite fell 0.89%.

Investors are awaiting a key policy decision from the central bank, which is widely expected to announce it It will raise interest rates by three-quarters of a point, its fourth such increase in a row in its ongoing effort to combat high inflation. Market participants, however, are looking for a signal that the central bank is ready to slow the pace of its rate hike plan in December.

“Looking for some guidance… 75 [basis points] Expectedly, it is going to be successful, but what will be the direction going forward? It’s about what’s coming and the pace of the next ups,” said Victoria Green, chief investment officer at G Squared Private Wealth, speaking on CNBC’s “Closing Bell: Overtime.”

On Tuesday, the ISM manufacturing index showed the share of firms reporting an expansion in October. It came 0.9 percent lower than September. The JOLTS report showed 1.9 job openings for every available worker.

“It’s not a great number for the Fed, it’s still a tight job market,” Green said. “So I think they’re still between a rock and a hard place. They have to hike. Nobody likes it. Everyone wants them to stop, but it’s like a car accident in slow motion. They can’t. Stop hiking.”

See also  'Saturday Night Live' returns from winter break, with Joe Biden blaming Omigran's rise on Spider-Man

In addition to the Fed’s policy decision, investors will also look to the release of mortgage application data and ADP’s employment report on Wednesday morning.

Earnings season for health care companies including CVS Health, Humana and GlaxoSmithKline continues on Wednesday. Paramount and Yum! Brands are also on deck.

Leave a Reply

Your email address will not be published.