Stock futures rose Wednesday morning as investors braced for the Federal Reserve’s latest policy decision at the conclusion of its meeting.
S&P 500 and Nasdaq 100 futures rose 0.33% and 0.42%, respectively. Futures linked to the Dow Jones Industrial Average also rose 0.2%.
In regular trading, major stock averages ended the day lower after September job vacancies showed a resilient job market. The Dow was down 79 points, or 0.2%. The S&P 500 lost 0.41%, and the Nasdaq Composite was down 0.89%.
Investors await a major policy decision from the Federal Reserve, which is widely expected to be announced It will raise interest rates by three-quarters of a pointIt is the fourth consecutive rise of this size, as part of its continuous efforts to combat high inflation. However, market participants are looking for a sign that the central bank is ready to slow the pace of its December rate hike plan.
“We are looking for a little guidance… 75 [basis points] Expectedly, it will happen, but what is the future guidance? It’s all about what’s going to happen and what’s the pace of the next hikes,” said Victoria Green, chief investment officer at J Squared Private Wealth. She spoke on CNBC’s “Closing Bell: Overtime.”
On Tuesday, the ISM Manufacturing Index showed the share of companies reporting expansion in October It came in 0.9 percentage point lower from september. The JOLTS report showed 1.9 jobs for every available worker.
“That’s not a big number for the Fed, it’s still a tight labor market,” Green said. “So I think they’re still between a rock and a hard place. They’re going to have to walk a long way. Nobody likes it. Everyone wants them to stop, but it’s like a car accident in slow motion. They just can’t stop for a walk.”
In addition to the Fed’s policy decision, investors will also be watching the mortgage application data and the ADP employment report, both of which will be released on Wednesday morning.
Earnings season will continue on Wednesday with healthcare companies including CVS Health, Humana and GlaxoSmithKline before the bell. Paramount and day! Brands are also on deck.
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