Why are stock futures rising before US Fed rate decision? S&P 500, Nasdaq, Dow react as 10-year yield hits 5%
India, Sept. 16 -- US stock futures moved higher on Wednesday as investors waited for the Federal Reserve's interest-rate decision. The market is expecting the US Fed rate to raise interests, which would be its first rate hike in more than three years.
The S&P 500 futures rose 0.2% before the decision. Dow Jones Industrial Average futures gained 0.1%, while Nasdaq futures climbed 0.4%. The moves show that investors were cautiously positive ahead of the Fed announcement. The expected rate hike is mainly linked to still-high inflation in the US. Inflation remains above the Fed's 2% target, making it harder for the central bank to ease borrowing costs, according to AP.
Fed Chair Kevin Warsh had already warned about inflation in a major spe...
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