India, July 29 -- Renewed fears of a hawkish monetary policy stance by the Federal Reserve roiled markets ahead of the FOMC announcement. The rate hike jitters weakened markets already overwhelmed by worries about the AI hype on earnings and valuations as well as the Middle East flare-up on crude oil prices and broader inflation.
The CME FedWatch tool that tracks the expectations of interest rate traders currently shows the likelihood of a pause by the Fed at around 64 percent, versus 69 percent a day earlier. With crude oil prices jumping again, markets are however pricing in the likelihood of interest rates remaining high for longer than feared.
Wall Street Futures are trading deep in the red. Major benchmarks in Europe are trading in m...