The S&P broad benchmark struggles to keep its rally as the Fed’s monetary policy becomes uncertain for investors

monetary policy

The S&P broad benchmark struggles to keep its rally as the Fed’s monetary policy becomes uncertain for investors.

The U.S. stock market is having a tough time keeping its rally up for several days. The Wall Street Journal reported that the main benchmarks are struggling amid the anticipated announcement of the FED interest rate policy. Most indexes have posted flat or minor gains these past few days as tension has increased worldwide.

Riots in the U.S. call for a ceasefire as we get closer to the election session. The U.S. Congress and the Washington Bureau also have to excite tough times ahead, which could reflect on the stock market due to the fragile trust relationship between the common people and the decision-makers in the U.S.

Meanwhile, in Wall Street, futures at 7:00 indicate a slight uptick, with the Dow showing a 0.1% increase, the S&P also up by 0.1%, and the Nasdaq experiencing a 0.1% decrease. Crude oil is on the rise, climbing by 0.5% to reach $75.72. Bernt oil [rices ros] increased slightly by 1.11% to $80.22 per barrel. Elsewhere, earlier data showed that Chinese oil importers fell to disinflationary territory in October. Meanwhile, gold is slightly down, with a 0.3% decrease, bringing it to $1,952.60. Bitcoin, on the other hand, is making gains, surging by 4.2% to $36,818.

The ten-year Treasury yield is up by 1 basis point, reaching 4.53%.

Broadly speaking, Wall Street Maon indexes were giving the same mixed and flat earnings over the past few days. The reason behind the flat numbers is the anticipation of comments from Jerome Powell, the head honcho at the Federal Reserve. People are eager to hear what he has to say because his words could give them insights into the direction of future monetary policy. The Federal Reserve has already announced that it will keep the interest rates fixed this month the same as the previous month. This is the second fixed interest rate hike in a row. That, in turn, gave the investors a sense of the end of aggressive monetary policy.

While investors wait for Jerome Powlle’s comments, other important economic events might help figure out the FED direction of future monetary policy. That includes the jobless claim report and the Fed’s future outlook for the U.S. economy.

Moving to the Q3 earnings report, Tapestry (NYSE: TPR) beat profit expectations but missed revenue. Its full-year 2024 outlook is in line with estimates; shares rose 3.8%. Wynn Resorts (NASDAQ: WYNN) reported after the closing bell, whereas Walt Disney (NYSE: DIS) surpassed earnings forecasts in Q4. Disney’s strong performance is attributed to streaming service subscriber growth and increased theme park attendance. Which in turn pushed its shares to rise by 7.5%.

On the political front, Treasury Secretary Janet Yellen will host Chinese Vice Premier He Lifeng today and tomorrow. The visit is more likely to discuss tense topics between the two nations. This includes addressing U.S. concerns about Beijing’s trade practices.

Written by Editor

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