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S&P 500 and Nasdaq Futures Edge Up as Market Eyes Fed’s Monetary Decision

As the Federal Reserve’s meeting concludes today, S&P 500 and Nasdaq futures experience a slight upward trend. This surge is attributed to investors’ anticipation of the Fed’s decision to maintain the status quo on interest rates.

Why is this Important?

  • There is a 95% expectation from traders that the U.S. central bank will maintain the current interest rates.
  • A 63% prediction foresees a possible 25-basis-point hike in July, signaling potential market shifts.
  • The awaited producer prices reading for May could affirm that inflationary pressures are easing, providing further relief to investors.
  • The S&P 500 and Nasdaq achieved their highest closing levels in 14 months, indicating positive market trends.
  • Individual stocks like Advanced Micro Devices and Tesla Inc experienced premarket changes, influencing market movements.

Federal Reserve’s Expected Move

The decision not to raise the interest rates, expected to be announced today at 2:00 p.m ET, would be the first of its kind since the aggressive monetary policy tightening that began in March of 2022. Investors are keenly waiting for this outcome, which will strongly influence market directions.

The anticipation of this decision has sparked market activity, with S&P 500 and Nasdaq futures showing a modest increase. Traders have largely bet on the current interest rates remaining unchanged, while a significant portion foresees a potential hike in July.

Individual Stocks Performance

The movements of individual stocks have added to the market anticipation. Advanced Micro Devices saw a 1.7% premarket rise after rumors of Amazon Web Services considering the use of their AI chips, and Tesla Inc experienced a 1.8% hike. However, Activision Blizzard slipped 0.9%, and United Health Group fell by 4.3%, indicating the market’s volatility.

Author: ForexRev Team

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