As traders prepare for the impending monetary policy decision from the Federal Reserve, Wall Street futures pointed higher in pre-bell trading on Wednesday. The anticipation is palpable as the U.S. central bank is set to announce any policy changes, if applicable, at 2 PM ET, with Chairman Jerome Powell scheduled to deliver a statement shortly afterward at 2:30 PM.
Investors are keenly awaiting insights that could hint at potential future rate cuts by the Fed. In early morning trading, the yields on the benchmark 10-year U.S. Treasuries remained anchored below 4.15%, reflecting market sentiment as investors' eyes turn toward the Fed's movements. The premarket futures show the S&P 500 rising by 1%, the Nasdaq climbing by 1.5%, and the Dow Jones gaining 0.4%.
This positive momentum suggests a bullish outlook among traders as they brace for critical economic indicators. Across the globe, Asian exchanges experienced mostly positive trading overnight, while European markets tracked solidly northward as midday approached on the continent. This overall buoyancy in global markets could be attributed to a sense of optimism regarding economic recovery and corporate earnings. In the tech sector, Microsoft (MSFT) faced a slight setback, edging down by 2.7% in pre-bell trading after reporting disappointing earnings late Tuesday.
Meanwhile, social media giant Meta Platforms (META) is on deck to report its earnings later in the day, which has investors eager to see the performance metrics of such a pivotal player in the industry. Other notable earnings reports this morning include those from Mastercard (M), T-Mobile US (TMUS), and Boeing (BA), all set to be released before the bell, potentially influencing market sentiment further. Additionally, the economic calendar for the day includes the ADP Employment Report for July at 8:15 AM ET, followed by the Q2 Employment Cost Index coming in at 8:30 AM.
A crucial number to watch will be the Chicago PMI for July, releasing at 9:45 AM, along with the pending home sales index bulletin at 10 AM. Lastly, the weekly EIA Petroleum Status Report is scheduled to be posted at 10:30 AM. In premarket action, Bitcoin was trading at $66,037, while West Texas Intermediate crude oil increased to $76.74.
The 10-year U.S. Treasuries offered yields of 4.14%, and spot gold was valued at $2,419 an ounce. Overall, the financial landscape is filled with anticipation as critical data and earnings reports loom on the horizon, shaping the trajectory of market movements in the coming hours..