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Equity futures vary as investors wait for the Federal Reserve to renew

US stock index futures were mixed during early Wednesday morning trading. The latest information on the Federal Reserve System..

Futures contracts related to the Dow Jones Industrial Average were 67 points lower. S & P 500 futures were almost flat, while Nasdaq 100 futures traded at slightly higher prices.

Inventory pulled back from record levels during Tuesday trading sessionThe S & P 500 fell 0.2% after hitting an all-time high early in the day. The Dow fell nearly 100 points and the Nasdaq Composite fell 0.7% as Big Tech’s share price fell.

The Federal Reserve Board started a two-day meeting on Tuesday.Central banks are not expected to make any policy moves, which could indicate that they are starting to think Relaxation of bond purchase policy.. The Federal Reserve Board will also announce new forecasts on Wednesday. This may indicate the potential for a top-notch rate hike in 2023. Previously, Fed officials had not reached an agreement to raise rates until 2023.

The meeting will be held as inflation heats up and producer prices rise at the fastest annual rate in almost 11 years. May.. This has led some, including Paul Tudor Jones, to ask central banks to rethink their simple monetary policy.

Brad McMillan, Chief Investment Officer of the Commonwealth Financial Network, said: “On a two-year basis that captures recessions and upturns, inflation is still in the normal range for the past decade. The one-year numbers are simply misleading … in more detail, about timeframes and components. Inflation isn’t as bad as the headline numbers suggest. ” McMillan said he hopes the Fed will maintain its course and continue to simulate policy.

Central banks buy $ 120 billion worth of bonds each month as the economy continues to recover from the coronavirus pandemic.

Minutes from the central bank’s last meeting showed that some Fed officials said it might be appropriate to discuss adjusting bond purchase programs if the economy continues to recover. It was. Economists predict that some of these discussions may begin, but specific details will not be revealed until later this year.

“A key factor to note at the Wednesday press conference is the approval of the Fed Chair. [Jerome] Daniel Di Martino, CEO and Chief Strategy Officer of Quill Intelligence, said: Participants expect a large, clear, tapered signal to arrive at the Jackson Hole conference in August. “

The Wells Fargo Investment Institute announced its outlook for mid-2021 on Tuesday, stating that the economic recovery by 2022 will be strengthened, especially thanks to the continued deployment of vaccines. Inflation, taxes and interest rates are the company’s biggest concerns over the next 18 months, but the company doesn’t think they will upset the rally.

“It seems very unlikely that we will stop the economic recovery or change our investment preferences in equities over bonds and in the cyclical equity sector over defensive and growth-oriented sectors,” the company said.

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Equity futures vary as investors wait for the Federal Reserve to renew

Source link Equity futures vary as investors wait for the Federal Reserve to renew

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