(Wednesday Market Open) After several days of tumbling amid trade war fears, markets look like they’re ready to possibly rebound a little Wednesday. Strength in European and Asian indices overnight could help provide some traction, and a slight pullback in bond prices might indicate more willingness among investors to embrace risk.
At the same time, volatility faded a bit, with the Cboe VIX falling back below 13 after rising above 14 earlier this week.
Despite these positive developments and a rally in pre-market trading, there’s no major change on the trade front that’s helped pin down stocks over the last few days. Maybe after a six-day losing streak for the Dow Jones Industrial Average ($DJI), people are simply engaged in some bargain hunting. Whether this can give the market a lift that lasts is unclear. We shall see.
In a major development r
Trade fears stalk Wall Street early Thursday as the administration plans to impose tariffs on China. Key earnings also on the calendar.
As widely expected, the Federal Open Market Committee raised target for Fed funds up a quarter-point to 1.5%-1.75%; said it expects to raise rates three times in 2019.
Markets in Waiting Game as Fed Decision on Interest Rate Direction Looms
Tech Shares Lead Fall in Volatile Monday; Fed Meeting Ahead
A rate hike is expected when the Fed meets this week, according to Fed funds futures. But a lot of questions about the economy loom ahead of the decision.
Housing numbers this morning are the main data point to watch, while volume and volatility might be higher than normal today due to quadruple witching.
With the S&P 500 index (SPX) down each day so far this week, the question is whether stocks can find any traction on what looks like a slow news day.
Caution continues to be the watchword as markets appear choppy amid trade and geopolitical concerns. Fatigue after a seven-day Nasdaq rally also a factor.
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