Following a mostly negative performance in the previous session, stocks are anticipated to rebound in early trading on Wednesday. The major index futures suggest a positive opening for the markets, with S&P 500 futures currently up by 0.3%.
Investors may view this as an opportunity to acquire stocks at relatively lower levels following yesterday's downturn, which saw the Dow decline for the ninth consecutive session. This marks the Dow's longest losing streak since 1978, as it plunged to its lowest close in nearly a month.
Despite this expectation of a rebound, early trading may be somewhat restrained as investors await the Federal Reserve's monetary policy announcement later today. The Fed is widely predicted to continue reducing interest rates, with CME Group's FedWatch Tool highlighting a 98.8 percent probability of another quarter-point rate cut.
Traders are likely to focus intently on the Fed's accompanying statement and the latest economic projections, including future rate forecasts. Recent data highlighting persistent inflation has raised concerns that the Fed might slow its rate reduction pace more than previously expected next year.
On Tuesday, stocks remained under pressure throughout the session after a weak start. The Nasdaq, focused on technology stocks, retreated from Monday's record high, while the Dow experienced its ninth consecutive loss, a first since 1978. The main averages recovered slightly from their lowest points as the session closed but remained in negative territory. The Dow decreased by 267.58 points or 0.6 percent to 43,449.90, the Nasdaq slipped 64.83 points or 0.3 percent to 20,109.06, and the S&P 500 dropped 23.47 points or 0.4 percent to 6,050.61.
In global markets, stock performance across the Asia-Pacific region was mixed on Wednesday. Japan's Nikkei 225 Index fell by 0.7 percent, whereas China's Shanghai Composite Index rose by 0.6 percent.
In contrast, European stocks are demonstrating modest gains today. Germany's DAX Index is up by 0.2 percent, France's CAC 40 Index has increased by 0.1 percent, and the U.K.'s FTSE 100 Index is hovering just above break-even.
In the commodities market, crude oil futures have risen by $0.71 to $70.79 per barrel after declining $0.63 to $70.08 on Tuesday. Meanwhile, an ounce of gold is trading at $2,661.70, marking a $0.30 decrease from the previous session's close of $2,662. On Tuesday, gold fell by $8.
On the currency front, the U.S. dollar is trading at 153.87 yen, up from 153.46 yen at Tuesday's New York close. Against the euro, the dollar remains steady at $1.0491, unchanged from yesterday.
The material has been provided by InstaForex Company -
www.instaforex.com
