U.S. Stocks Set To Open Higher Ahead Of Fed Interest Rate Decision

U.S. Fed Interest Rate Decision In Spotlight

Today, the U.S. Federal Reserve will announce its Interest Rate Decision and provide commentary on the current state of the economy as well as on the central bank’s plans for the future.

This is the first meeting after the adoption of a 2% average inflation target so traders will focus on Fed’s commentary about the potential trajectory of interest rates.

The current market consensus implies that interest rates will stay close to zero for years. However, it is not clear whether the Fed is ready to keep rates at the bottom until the end of 2022 or the end of 2023.

A firm promise to keep the rates near zero until the end of 2022 will not be dovish enough, and the market may find itself under pressure. If the Fed indicates that the rates will stay low until 2024, stocks will get additional support.

S&P 500 futures are gaining ground in premarket trading as investors believe that the Fed will deliver a very dovish message.

Republicans And Democrats Look Ready To Continue Negotiations On The New Coronavirus Aid Package

U.S. House Speaker Nancy Pelosi indicated that Democrats were ready to delay the October recess in order to negotiate a new coronavirus aid bill.

Republicans also signaled that they were ready to deal with a new $1.5 trillion proposal presented by a bipartisan group.

The U.S. economy needs another stimulus package to support consumer activity. In case Democrats and Republicans manage to reach consensus on the new aid bill, the U.S. stock market will get another positive catalyst.

Retail Sales Grow By 0.6% In August

The U.S. has just provided Retail Sales data for August. On a month-over-month basis, Retail Sales increased by 0.6% compared to analyst consensus which called for growth of 1%. Year-over-year, Retail Sales gained 2.6%.

The growth of Retail Sales is slowing down, highlighting the necessity to come up with another coronavirus aid package that will boost consumer spending.

While the Retail Sales data was a bit disappointing, traders will likely stay focused on the upcoming Fed Interest Rate Decision, although the weaker-than-expected report may put some pressure on stocks.

For a look at all of today’s economic events, check out our economic calendar.


Source link

0 0 voter
Article Rating

S’abonner
Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site Union-trader.com peut être amené à produire des commentaires d’ordre général sur son site ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site Union-trader.com décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.