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Stocks Mark Time Ahead of Fed Decision
Investors await the Federal Reserve's rate decision and tech earnings amid concerns over an AI-driven bubble and revised expectations for future interest rate cuts.
- On Wednesday, Asian markets retreated as investors waited a highly anticipated Federal Reserve policy announcement later in the day, with Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Jakarta and Manila falling while Taipei edged up and Seoul was flat.
- Tuesday's jobs-related data showed an uptick in openings, tempering expectations for cuts as markets now price two rate reductions over the next 12 months.
- Earnings from Oracle, software giant, and Broadcom, chipmaker, this week are watched to assess AI sector capex amid concerns about an AI-fuelled bubble, market sentiment says.
- Speculation that the Fed might deliver a "hawkish cut" cooled momentum, with New York's Dow down 0.4 percent at 47,560.29, and Hong Kong's Hang Seng, Shanghai Composite falling as Brent and WTI rose modestly.
- Looking toward next year, National Australia Bank's Taylor Nugent noted `While he has indicated that he would respond to the data and that he would not bow to political pressure to decide whether to cut interest rates, if he becomes the next chair, it is clear that on the current backdrop he is comfortable with more easing`, implying hope for a dovish shift.
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The futures market showed that investors were confident the Fed would cut interest rates by 0.25 percentage points, to 3.50% to 3.75%.
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Total News Sources51
Leaning Left5Leaning Right8Center9Last UpdatedBias Distribution41% Center
Bias Distribution
- 41% of the sources are Center
41% Center
L 23%
C 41%
R 36%
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