S&P 500 futures were little changed Tuesday evening as investors awaited the Fed’s policy decision and subsequent news conference scheduled for Wednesday afternoon.
S&P 500 futures were little changed. Nasdaq 100 futures rose 0.1%, while Dow Jones Industrial Average futures fell 82 points, or 0.2%.
In addition to the Fed’s policy statement, investors are also preparing for Chairman Jerome Powell’s speech to the media, when he may provide insight into the state of the economy and the central bank’s path forward. Markets are pricing in a 93% chance the central bank will keep rates at its current target of 5% to 5.25% CME Group’s FedWatch tool. This will hold off on rate hikes after 10 consecutive hikes.
The producer price index, an indicator of the path of inflation, is due Wednesday morning. On Tuesday, consumer prices for May showed their slowest annual gain in more than two years, boosting investors’ hopes that the Federal Reserve won’t raise interest rates.
That optimism drove markets higher on Tuesday.this Dow 30 Stocks increased by nearly 146 points, or 0.4 percent, while S&P 500 Index and Nasdaq Composite Index They rose 0.7 percent and 0.8 percent, respectively. The S&P 500 and Nasdaq both hit their highest levels since last April.
“Markets are supported by the CPI report, which suggests that inflation continues to move lower and that the Fed will ‘skip’ tomorrow’s rate announcement,” said Quincy Krosby, chief global strategist at LPL Financial. “A lot will depend on tomorrow’s FOMC statement and Jerome Powell’s answer at the press conference.”