In a captivating start to Wednesday's premarket trading, major U.S. equity indices, including the Standard & Poor's 500, Nasdaq, and Dow Jones Industrial Average, were all showing upward momentum, increasing by 0.2% each before the market opened. This rally comes as investors await critical insights from the Federal Reserve regarding its interest rate policy later in the day. As the clock ticks down to the Fed's announcement at 2 PM ET, speculations are mounting.
Current data from the CME FedWatch tool indicates a 65% probability that the central bank will opt for a more aggressive approach, reducing its benchmark lending rate by 50 basis points. Alternatively, a 25-basis-point reduction is also on the table, which has been deemed more unlikely at this juncture. The economic landscape for the day is packed with significant reports scheduled for release.
The weekly mortgage applications bulletin is expected to be published at 7 AM, followed shortly by vital housing starts and permits data for the month of August at 8:30 AM. At 10 AM, the Atlanta Fed's Business Inflation Expectations report will be released, illuminating potential inflation trends affecting businesses today.
Following that, investors can anticipate the weekly domestic petroleum inventories report at 10:30 AM, which should provide further insights into energy market dynamics. On the corporate front, General Mills, identified by the ticker symbol $GIS, is poised to unveil its latest earnings results before the market's open, alongside other notable announcements.
Meanwhile, Steelcase, denoted as $SCS, is set to report its earnings after the financial markets close, offering shareholders a glimpse into the company's performance amid evolving market conditions. In one of the more striking movements in premarket trading, shares of Intuitive Machines ($LUNR) surged by an impressive 45%.
This notable spike can be attributed to the company securing a Near Space Network contract with NASA, which boasts a maximum potential value of $4.82 billion, underscoring the growing opportunities in the aerospace sector. In contrast, Alphabet Inc. ($GOOGL) experienced a modest gain of 0.7% after the European Union's General Court annulled a significant fine of 1.49 billion euros (approximately $1.66 billion) imposed by the European Commission, which accused Google of engaging in abusive practices within the online advertising space.
This development could reshape the landscape of tech regulations, providing Alphabet with some breathing room amid increasing scrutiny. As premarket trading continues, notable shifts in cryptocurrency and commodities are noteworthy. Bitcoin slipped by 0.6%, positioning itself at $59,852. On the commodities front, West Texas Intermediate crude oil saw a decline of 1.4%, landing at $70.21 per barrel.
Meanwhile, yields on 10-year Treasury notes experienced a slight uptick of 0.2 basis points, reaching 3.66%. Gold prices also increased by 0.4%, with the commodity now trading at $2,602 per ounce, reflecting continued investor interest in safe-haven assets amid market volatility. These indicators are crucial as they provide insights into investor sentiment as the market prepares for the day's key economic announcements..