After a strong rally in the previous trading session, futures on Wall Street are showing a mixed picture as investors turn their attention to the upcoming Federal Reserve meeting. The main indexes, including the S&P 500 and the Nasdaq, rebounded by over 1% yesterday, recovering from weeks of volatility caused by rising Treasury yields and the Israel-Hamas conflict. However, despite this recent surge, U.S. equities are still on track for their third consecutive month in the red, with October set to be the worst month for these indexes since 2018.
At 5:18 a.m. ET, Dow e-minis were up 95 points or 0.29%, S&P 500 e-minis were up 4 points or 0.1%, and Nasdaq 100 e-minis were down 14.25 points or 0.1%. This mixed performance reflects the uncertainty that continues to grip the markets, as investors weigh the ongoing impact of the pandemic, inflation concerns, and geopolitical tensions.
All eyes are now on the Federal Reserve as they begin their two-day policy meeting. Investors are eagerly awaiting any signals or updates on the central bank’s plans for tapering its bond-buying program and its assessment of the current economic situation. With inflationary pressures mounting and the labor market still recovering, the Fed’s decision and accompanying statements will have a significant impact on market sentiment and direction.
As we move forward, it remains to be seen whether the recent rally can be sustained or if the market will once again succumb to the challenges it has faced in recent weeks. The outcome of the Federal Reserve meeting will undoubtedly play a crucial role in shaping investor sentiment and the direction of U.S. equities.
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