U.S. Stock Futures Climb Ahead of Anticipated Fed Rate Hike
By EC Assets · Published
U.S. stock futures gained on Wednesday as the oil rally paused. Investors are anticipating a key interest-rate decision from the Federal Reserve. The central bank is widely expected to raise interest rates today. Nasdaq futures edged higher. Futures tracking Canada's main stock index also rose. Oil prices and bond yields paused after a recent surge. The Federal Reserve is expected to hike interest rates on Wednesday. This decision comes less than two months before the midterm elections. This could be the first interest rate hike in three years. The yield on the 10-year Treasury hovers above 5%. Bond market woes are likely a factor for the Fed. However, intervention in the bond market is seen as unlikely. Gold holds in the $4,300 range, awaiting the Fed's decision. Oil prices are falling. U.S. crude inventories reportedly rose. Traders are also weighing a Saudi pipeline closure. Stocks ticked up as oil falls and bonds stabilize ahead of the Fed decision. BlackRock strategist Gargi Pal Chaudhuri recommends investors stay invested in the artificial-intelligence sector. She also suggests broadening into themes like quality and healthcare. History shows that a Federal Reserve rate hike to slow the rapid rise in longer-term yields probably won't be a success. This article is intended for informational purposes only. It does not constitute investment advice.
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