Stock market today: US futures in holding pattern in wait for Fed decision
Published On Sep 18, 2024, 6:32 AM
U.S. stock futures are in a holding pattern as investors await the Federal Reserve's interest rate decision. Futures for the Dow Jones and S&P 500 saw slight increases ahead of the Fed's announcement, which is expected to include its first rate cut since 2020. The market is divided over whether the cut will be 0.25% or a more substantial 0.5%. Interest rates have been a focus due to signs that the Fed has managed to cool inflation without causing severe economic disruption. Additionally, recent corporate developments include Microsoft's collaboration with BlackRock to invest in AI infrastructure and a legal win for Google regarding an antitrust fine.
Stock Forecasts
MSFT
Positive
The stock market may experience volatility leading up to the Fed's decision. If the Fed opts for a 0.5% cut, which is currently favored by market predictions, it could bolster stock prices and investor confidence, particularly in growth sectors like technology.
GOOG
Negative
Should the Fed only implement a 0.25% cut, markets may react negatively in disappointment as investors had priced in a more aggressive approach. This could adversely affect growth stocks that thrive in a low-rate environment, like tech stocks.
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