The Market News Today: Investors Bracing for Uncertain Fed Response to Inflation

Fed Faces Decision Amid Lingering Inflation Concerns

As the Federal Reserve convenes today at 18:00 GMT, expectations are mixed regarding its response to persistent inflation. Despite previous rate hikes, inflation remains above the 2% target. Economists anticipate the Fed’s cautious approach, likely maintaining elevated rates to combat inflation while balancing economic stability. Chair Powell’s remarks may shed light on the Fed’s stance, with uncertainties about the timing of rate adjustments amid complex economic factors.

S&P 500 Futures Slip Ahead of Fed Decision

Investors await the Federal Reserve’s rate policy decision, with S&P 500 futures dipping. Amazon saw gains after strong earnings, while chipmakers AMD and Super Micro Computer faltered. April concluded with major averages posting losses, setting a cautious tone. Traders anticipate clues from Fed Chair Powell on rate adjustments. Economic data on job openings and ADP’s private employment report expected. Earnings reports from Pfizer, Kraft Heinz, CVS Health, Qualcomm, and DoorDash are scheduled before the opening.

Treasury Yields Steadily Await Fed Guidance

U.S. Treasury yields are holding steady on Wednesday as investors await economic data and the Federal Reserve’s latest interest rate decision and monetary policy guidance. At 8:41 GMT, the yield on the 10-year Treasury is less than one basis point higher at 4.6862%. The 2-year Treasury yield is currently at 5.0373%, remaining above the 5% mark. Investors are looking ahead to the conclusion of the Federal Reserve’s latest meeting and considering key economic data.

Gold Prices Hold Steady, Oil Falls on Inventory Buildup

Gold prices are struggling for momentum ahead of Fed’s rate decision. Spot gold remains unchanged at $2,286.53 per ounce. The focus shifts to Fed’s policy decision and remarks from Chair Jerome Powell. Oil prices are declining on rising crude inventories and hopes of a Middle East ceasefire. U.S. crude supply increased, while OPEC output fell.

Cannabis Stocks Surge on Biden Administration’s Federal Restrictions Easing

Cannabis stocks leaped on Tuesday afternoon, buoyed by a Biden administration decision to ease federal restrictions on marijuana. The U.S. Drug Enforcement Administration was expected to approve an opinion by the Department of Health and Human Services to reclassify marijuana as a Schedule III substance, NBC News reported, citing four sources with knowledge of the decision. For more than 50 years, marijuana had been labeled a Schedule I substance, alongside drugs like methamphetamine and heroin.