Looming Fed Announcement May Lead To Choppy Trading On Wall Street

The major U.S. index futures are pointing to a roughly flat opening on Wednesday after the major averages edged up to new record closing highs in the previous session.

Traders are likely to be reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement this afternoon.

The announcement from the Fed is due at 2 pm ET, while Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 pm ET.

The Fed is widely expected to leave interest rates unchanged, although traders will pay close attention to the accompanying statement for clues about the outlook for policy.

The statement may offer details on how the central bank plans to start shrinking its $4.5 trillion balance sheet.

While buying interest was somewhat subdued, stocks moved modestly higher over the course of the trading session on Tuesday. With the upward move on the day, all three of the major averages ended the session at record closing highs.

The major averages ended the day in positive territory but off their best levels. The Dow rose 39.45 points or 0.2 percent to 22,370.80, the Nasdaq edged up 6.68 points or 0.1 percent to 6,461.32 and the S&P 500 inched up 2.78 points or 0.1 percent to 2,506.65.

The higher close by the major averages reflected a continuation of the upward momentum seen on Wall Street over the past several sessions.

However, traders seemed reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for clues about the outlook for policy.

On the U.S. economic front, the Commerce Department released a report showing an unexpected decrease in new residential construction in the month of August.

The report said housing starts fell by 0.8 percent to an annual rate of 1.180 million in August from a revised 1.190 million in July. Economists had expected housing starts to jump by 1.7 percent.

A separate report released by the Labor Department showed increases in import and export prices in the month of August.

The Labor Department said import prices climbed by 0.6 percent in August after edging down by 0.1 percent in July. Economists had expected import prices to rise by 0.4 percent.

The report said export prices also rose by 0.6 percent in August following a 0.5 percent increase in the previous month. Export prices had been expected to edge up by 0.2…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *