Wall Street is flat ahead of the release this week of U.S. inflation data and the Federal Reserve’s final interest rate decision of the year. Futures for the S&P 500 and the Dow Jones Industrial Average each lost less than 0.1% before the bell Monday. The Fed will will announce its next move on interest rates Wednesday. Most economists expect the Fed to stand pat and not raise its benchmark borrowing rate. It would be the third consecutive time that the Fed, after string of rate hikes to fight inflation, has left its benchmark rate alone.
- Wall Street’s Cautious Stance: Ahead of key U.S. inflation data and the Federal Reserve’s interest rate decision, Wall Street is showing a cautious outlook with slight declines in futures for the S&P 500 and Dow Jones.
- Federal Reserve’s Anticipated Decision: The Federal Reserve is expected to maintain its benchmark borrowing rate, marking a potential third consecutive period without a rate hike.
- Inflation and Recession Concerns: The focus is on managing inflation while avoiding a recession, with hopes for a “soft-landing” supported by a strong labor market and consistent spending.
- Upcoming U.S. Inflation Report: U.S. consumer inflation data is due for release on Tuesday.
- Global Central Bank Meetings: This week, key central banks, including the European Central Bank and the Bank of England, are set to meet.
- Cigna’s Stock Movement: Health insurer Cigna’s shares surged in premarket trading following reports of its decision to abandon the Humana acquisition and opt for a $10 billion share buyback.
- European and Asian Markets: European markets show mixed trends, while Asian markets closed with varied results, including gains in Tokyo and Shanghai.
- Oil Prices and Currency Movements: Oil prices slightly declined, and the U.S. dollar strengthened against the Japanese yen.
- Positive Market Reaction to U.S. Jobs Report: The S&P 500, Dow Jones, and Nasdaq all gained following the favorable U.S. job market report, which showed better-than-expected job additions and wage growth.
The Associated Press has the story:
Wall Street drifts ahead of the final Federal Reserve meeting in 2023
Newslooks- NEW YORK (AP)
Futures for the S&P 500 and the Dow Jones Industrial Average each lost less than 0.1% before the bell Monday.
The Fed will will announce its next move on interest rates Wednesday. Most economists expect the Fed to stand pat and not raise its benchmark borrowing rate. It would be the third consecutive time that the Fed, after string of rate hikes to fight inflation, has left its benchmark rate alone.
A sturdy labor market and steady spending are making it increasingly possible that the Fed can pull off a so-called “soft-landing,” whereby inflation is tamed and a recession is avoided.
Central banks in Europe are meeting as well this week, including the European Central Bank, the Bank of England, the Swiss National Bank, and Norway’s central bank.
Cigna jumped nearly 14% in premarket on reports that the health insurer was dropping its bid to acquire Humana and spending $10 billion to buy back its own shares.
In Europe at midday, Germany’s DAX was virtually unchanged, the CAC 40 in Paris gained 0.3% and the FTSE 100 in London was down 0.4%.
In Asia, Hong Kong’s Hang Seng sank 0.8% to 16,201.49 and the Shanghai Composite added 0.7% to 2,991.44.
Tokyo’s Nikkei 225 index gained 1.5% to 32,791.80 and the Kospi in Seoul was 0.3% higher, to 2,525.36. Australia’s S&P/ASX 200 rose 0.1% to 7,199.00.
India’s Sensex was 0.1% higher and Bangkok’s SET added 0.2%.
Oil prices retreated Monday with a barrel of benchmark U.S. oil losing 13 cents to $71.10 in electronic trading on the New York Mercantile Exchange. It’s more than $20 below where it was in September.
Brent crude, the international standard, fell 9 cents to $75.75 per barrel.
In currency dealings, the U.S. dollar rose to 146.42 Japanese yen from 144.93 yen. The euro was trading at $1.0769, up from $1.0761.
On Friday, the S&P 500 rose 0.4% to 4,604.37, marking its longest winning streak in four years, following a better-than-expected U.S. job market report.
The Dow Jones Industrial Average and the Nasdaq composite both gained 0.4%.
The government’s jobs report on Friday showed that U.S. employers added more jobs last month than economists expected. Workers’ wages also rose more than expected, and the unemployment rate unexpectedly improved.
The strong data have kept at bay worries about a possible recession, at least for a while longer, and stocks of some companies whose profits are closely tied to the strength of the economy rallied.