Anticipation Builds on Wall Street for Federal Reserve’s Upcoming Policy Moves; WTI and Brent See Upticks
18 Março 2024 - 8:12AM
IH Market News
In Monday’s pre-market trading, U.S. index futures are mixed,
with Wall Street in anticipation of the monetary policy guidelines
that the Federal Reserve is expected to release during the
week.
At 06:31 AM, the futures of the Dow Jones Industrial Average
(DOWI:DJI) fell 15 points, or 0.04%. The S&P 500 futures
advanced 0.37%, and the Nasdaq-100 futures gained 0.73%. The yield
on 10-year Treasury bonds was at 4.308%.
In the commodities market, West Texas Intermediate crude for
April rose 0.89% to $81.76 per barrel. Brent crude for May rose
0.71%, near $85.95 per barrel. Iron ore traded on the Dalian
exchange fell 0.94% to $111.55 per metric ton.
On Monday’s economic agenda, investors await the publication of
the homebuilders’ confidence index for March, scheduled for 10:00
AM by the National Association of Home Builders (NAHB). Analysts
project an indicator at 48 points.
The Asia-Pacific stock markets closed higher, stimulated by
Chinese economic indicators above expectations and anticipation of
the Bank of Japan’s interest rate policy. Japan’s Nikkei index led
the gains with a jump of 2.67%, driven by shares in the electronics
and real estate sectors, while the Shanghai Composite in China
advanced 0.99%, reflecting optimism in the regional economy.
Despite concerns about the real estate sector, evidenced by the
drop in new home sales, the world’s second-largest economy revealed
surprising increases in industrial production and retail sales.
European markets are showing gains, with investors’ eyes on the
upcoming Federal Reserve meeting. Expectations are growing as the
Federal Open Market Committee (FOMC) prepares to begin its
deliberations on Tuesday, with crucial announcements on monetary
policy expected on Wednesday.
On Friday, shares in the United States retreated as investors
focused on the imminent Federal Reserve meeting. The Nasdaq and the
S&P 500 closed lower for the third consecutive day. The Dow
Jones fell 190.89 points, the S&P 500 retreated 33.39 points,
and the Nasdaq dropped 155.36 points.
Although the Fed is expected to keep rates unchanged, investors
are eager for any indication of future adjustments. According to
the CME FedWatch tool, there is an almost unanimous expectation,
with a 99% probability, that the American Central Bank will keep
interest rates stable this week. However, optimism for a rate cut
in June has receded, now estimated at about 55%, reflecting a shift
in market forecasts and sentiments in recent days.
In terms of quarterly results, Science Applications
International Corp (NYSE:SAIC), Embraer
(NYSE:ERJ), Niu Technologies (NASDAQ:NIU),
OneConnect Financial Technology (NYSE:OCFT),
Exagen Inc (NASDAQ:XGN),
ProSomnus (NASDAQ:OSA), and Acurx
Pharmaceuticals (NASDAQ:ACXP) are scheduled to present
financial reports before the market opens.
After the close, the numbers from StoneCo
(NASDAQ:STNE), Dlocal (NASDAQ:DLO),
Lantern Pharma (NASDAQ:LTRN), Comtech
Telecommunications (NASDAQ:CMTL), FreightCar
America (NASDAQ:RAIL), Westport Fuel
Systems (NASDAQ:WPRT), Bit Digital
(NASDAQ:BTBT), Eyenovia (NASDAQ:EYEN),
Joyy (NASDAQ:YY), and more are awaited.
ProSomnus (NASDAQ:OSA)
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