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Dow turned down as stock market investors waited for Federal Reserve Chairman Jerome Powell to update policy

US stock index futures flat on Wednesday as Wall Street supports it as a significant policy update from the Federal Reserve Board on the pace of economic recovery and inflation from the US COVID. It has fallen slightly from.

How are stock benchmarks traded?

on Tuesday,Dow
DJIA,
-0.10%

It decreased by 94.42 points (0.3%) to 34,299.33. S & P 500
SPX,
+ 0.01%

It ended with 8.56 points at 4,246.59, or 0.2%.Nasdaq Composite Index
COMP,
+ 0.22%

It decreased by 101.29 points (0.7%) to 14,072.86.

What is driving the market?

The Fed’s inflation outlook on Wednesday is in the spotlight as the Central Bank of the United States will release the latest information on its April policy statement and future interest rate outlook at 2:00 pm EST.

Federal Reserve Board Chair Jerome Powell could show at a press conference at 2:30 pm that policymakers will not change interest rate policies in the range of 0% to 0.25% until at least the end of 2022. There is. , The economist says.

But investors and strategists will listen to the Fed’s statement on monetary easing plans in the pandemic era, including the purchase of $ 80 billion in Treasury bills and $ 40 billion in mortgage-backed securities each month.

Last thursday Consumer Price Index Report Living expenses soared in May, according to a report from the U.S. Department of Labor. Inflation pace It reached a record high of 5% for the first time in 13 years, reflecting the significant price increases facing Americans.

In the face of rising inflation, the timing of declining asset purchases, labor market recovery still appears volatile, May weaker than expected non-farm payrolls report And job data Record high of 9.3 million people..

So far, the Fed has explained evidence of inflation largely due to temporary factors, such as the elimination of blockade protocols aimed at curbing the spread of coronavirus and supply chain bottlenecks.

check out: Four things to keep in mind when the Fed makes the latest monetary policy decisions

Still, some prominent investors and economists have expressed the view that the Fed may be too happy with rising prices and may last longer than central bank expectations.

read:Inflation storm is coming to the U.S. housing market

“We’re not in the camp saying that the persistent inflation problem is a completed deal, but the March forecast predicts that the Fed will do everything right for inflation to finally return to its target. I think we need to. Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, said in a memo.

A CNBC Fed According to the survey, market participants believe that the central bank may stabilize its bond purchase program until the end of the year, but it will begin to taper off by October and will begin to do so by the beginning of 2022. ..

In other news, China said it plans to release its national reserve Development of major industrial metals to curb soaring commodity prices amid the resumption of global economic activity.The news is data from China Factory output slowed down May is the third consecutive month. China’s industrial production increased 8.8% in May from a year ago, slower than the 9.8% increase in April.

Elsewhere Annual inflation In the UK, the Bank of England’s goal was exceeded in May for the first time in almost two years. Consumer prices rose 2.1% year-on-year in May, the National Bureau of Statistics said Wednesday, the fastest pace of growth since July 2019.

Meanwhile, President Joseph Biden and his Russian counterpart Vladimir Putin Meet in Geneva late Wednesday.

In other economic news, US housing permits fell 3% in May to a pace of 1.68 million years, and start-ups increased 3.6% to a pace of 1.57 million years. In April, US housing starts fell from 1.76 million to 1.52 million. US import prices rose 1.1% in May, up 0.9% after deducting fuel, contributing 11.3% in the last 12 months.

Which company is paying attention to?
  • Oracle stock
    ORCL,
    -5.33%

    Was later in focus Fourth quarter results late Tuesday.. The tech company reported fourth-quarter sales of $ 11.23 billion, up $ 4.03 billion ($ 1.37 per share) from $ 10.44 billion in the year-ago quarter.

  • Disclosure by ARK Invest What you purchased Draft Kings DKNG On Tuesday, $ 42 million worth of shares were claimed by top-selling research firm Hindenberg, whose gambling tech division operates in a country where gambling is banned. According to DraftKings, its subsidiary SBTech does not operate in illegal markets. Purchasing DraftKings by Ark — Ark Innovation ETF ARKW And that Ark Next Generation Internet ETF ARKK— It was the largest single share purchase by a fund manager run by Cathie Wood on Tuesday.

  • Confluent Inc.. CFLT, have Set conditions for initial public offering, California-based data infrastructure software company could value up to $ 8.33 billion.

  • Elanco Animal Health Co., Ltd... ELAN Said it signed a deal on Wednesday Kindred Biosciences Inc.. KIN For about $ 440 million, it will add three potential dermatological blockbusters to the pipeline.

  • WalkMe Co., Ltd... WKME, Israel’s customer engagement platform said Wednesday that the initial public offering price was $ 31 per share and the proposed price range was $ 29 to $ 32.

  • Amazon.com Inc.. AMZN On Wednesday, it said it had promised $ 300 million to accelerate the creation of up to 3,000 new affordable housing units across Washington DC and the Puget Sound region of Nashville.

Dow turned down as stock market investors waited for Federal Reserve Chairman Jerome Powell to update policy

Source link Dow turned down as stock market investors waited for Federal Reserve Chairman Jerome Powell to update policy

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