London, Wednesday, 22 March 2023
On Wednesday, US stock futures remained stable as investors got ready for the Federal Reserve to make a crucial policy decision, which is anticipated to result in a less aggressive increase in interest rates due to easing inflationary pressures and the recent banking crisis.
The three main index-related futures contracts were all trading close to breakeven. All three benchmarks increased on Tuesday during regular trading, with the Nasdaq Composite rising 1.58%, the S&P 500 increasing 1.3%, and the Dow rising 0.98%. Eight of the 11 S&P sectors ended higher, with the energy, consumer discretionary, and financial sectors leading the way.
The US will continue to protect depositors beyond FDIC insurance limits should bank runs recur, Treasury Secretary Yellen said, sending banks soaring. Investors anticipated dovish language from the Fed on Wednesday and expressed optimism that the worst of the financial turmoil is behind us.
(Written and edited by: The Decision Maker - Finance editors)