Stock futures increased marginally in overnight trading yesterday as investors are anxiously awaiting the central bank’s aggressive step to tame increasing inflation.
Stock Futures on the Dow Jones gained seventy points. S&P 500 futures shown an increase of 0.3% and Nasdaq 100 futures shown increase of 0.4%.
The S&P 500 experienced a straight five-day losing on Tuesday. The equity benchmark has declined by more than 4% this week and is now 22% lower than early January. The blue-chip Dow fell about 150 points yesterday. The Nasdaq Composite finished slightly higher at the end of the day yesterday.
The Federal Open Market Committee (FOC) in its two-day meeting may announce a hike in the interest rates by 75-basis points. According to CME Group’s FedWatch tool, this hike will be the biggest hike since 1994.
Quincy Krosby, chief equity strategist at LPL Financial said, “The change in the headline from fifty basis points to seventy-five basis points reflects a stark reality but it also reflects the Fed’s determination to underscore its commitment to its mandate to maintain price stability. It is neither a trial balloon nor a lead balloon — it is reality.”