A Pause on Wall Street: Markets Brace for Fed's Rate Decisions
U.S. stock index futures steadied as investors anticipated new economic data to predict the Federal Reserve’s next monetary policy move. The potential rate cut fueled investor enthusiasm, driving the S&P 500 and Nasdaq to record highs. Analysts caution against assuming a rate cut is certain, highlighting conflicting economic signals.
On Thursday, U.S. stock index futures remained steady following a robust performance on Wall Street earlier this week. Investors await the latest economic data, eager to discern the Federal Reserve's upcoming policy decisions. Recent reports of labor market weakness have fueled expectations for a possible reduction in interest rates next month.
Despite these predictions, some experts urge caution, pointing to inflation rates that have surpassed targets. Michael Brown, senior research strategist at Pepperstone, voiced reservations about the market's confidence in a rate cut, noting inflation's persistent upward trend. Additionally, San Francisco Fed President Mary Daly and Treasury Secretary Scott Bessent expressed differing views on the size of potential rate cuts.
With stock index futures showing marginal changes, investors anticipate key economic reports, including jobless claims and the Producer Price Index. These indicators will offer insights amid ongoing concerns about the quality of economic data, intensified by budget and staffing reductions. Meanwhile, the possibility of new tariffs on pharmaceutical imports looms, as the White House mulls over its findings.
(With inputs from agencies.)
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