Traders at the New York Stock Exchange on May 17, 2024, were eagerly awaiting the Federal Reserve’s interest rate decision and May’s consumer inflation data, causing stock futures to fluctuate near the flatline on Tuesday night. Dow Jones Industrial Average futures slipped 2 points, S&P 500 futures ticked up by 0.06%, and Nasdaq 100 futures added 0.1%. Oracle’s stock saw an 8.8% jump in extended trading following the announcement of new cloud deals with Google and OpenAI, despite misses in the company’s latest quarter.
During Tuesday’s trading, Apple’s push into artificial intelligence at its developer conference boosted the S&P 500 and Nasdaq Composite to fresh closing highs. The Dow, however, lost 0.31% in the midst of this upward trend. Investors were eagerly awaiting Wednesday’s conclusion of the Fed’s policy meeting, looking for insight into the central bank’s interest rate decision and Chair Jerome Powell’s subsequent press conference. The Fed is expected to maintain its benchmark overnight borrowing rate in a range between 5.25%-5.5%, but updates to the Summary of Economic Projections could impact future policy decisions.
Investors are particularly concerned about the recent strong jobs report and persistent inflation rates, which could support a higher interest rate environment in the long term. Market analysts will closely analyze any mention of labor market concerns in the Fed’s statement, dot plot, or Powell’s comments, as indications of deterioration could prompt a shift in interest rates. The release of May’s consumer price index data on Wednesday morning is also highly anticipated, with forecasts expecting a 0.1% increase from April and a 3.4% rise on a year-over-year basis.
Overall, market sentiment remains cautious as investors await key economic data and the Fed’s policy decision. The outcome of Wednesday’s events could have a significant impact on future market trends and investor behavior. As uncertainty looms, traders are advised to closely monitor developments and stay informed to make informed investment decisions. The stock market’s reaction to the Fed’s decision and inflation data will be closely watched in the coming days as market dynamics continue to evolve.
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