Stocks Rise Ahead of Fed – Nasdaq Jumps 0.6%
US stock markets enjoyed another positive day ahead of tomorrow’s anticipated rate hike from the Federal Reserve Bank. All three major indexes rose with the Nasdaq leading the way finishing the day up 0.61% after a strong Google earnings report, the S&P 0.28% and the Dow just poking its nose above flat at 0.08% up. The dollar retreated slightly having made strong ground over the last week and US treasury yields had a mixed day.
It is All About the Fed Today
For some investors, there is only one story in town today for global financial markets and that is the much-anticipated Federal Reserve Rate meeting conclusion, For once in the last year it will not be about the actual rate announcement as 25 basis points is fully locked in. However, the real moves will come from what the market gets from the statement and what Fed Chair Jerome Powell has to say in the later press conference. The market is still leaning towards this being the last hike for the year, whereas many fed members have been calling for at least one more and a more hawkish message could see some serious corrections, both for the dollar and for what have been bullish stock markets.
Market Calendar Skewed towards the Fed Rate Announcement
The Federal Reserve’s latest Rate announcement and accompanying statement and press conference is the main play of the day but there are some other market events for traders to navigate before we get the latest rate update. The focus will be on the Australian market early in the Asian day with the latest release of the CPI data and its consequent impact on the RBA’s rate plans. The European session has little to trouble the scorers but when New York opens both New Home Sales and the latest US Crude Oil inventories’ have the propensity to move markets before all the attention moves to Washington DC.
