Stocks searched for direction Wednesday ahead of the Federal Reserve’s announcement interest rates. The Fed will announce its latest economic projections, due at 2pm ET.
At 11:15am ET, the Dow Jones Industrial Average moved up 0.04% to 32,838. The S&P 500 was lower by 0.56% at 3940, and the Nasdaq Composite Index traded off the most, losing 1.15% at 13,316.
Most investors anticipate the Fed saying the labor market and inflation are rebounding faster than they had anticipated in December. The question now is, will the Fed be less inclined to be accommodative? And, if so, what will that mean for stocks?
The market has become highly sensitive to changes in Central Bank policy and any signaling of higher rates could cause investors to pull back.
Already the treasury markets are indicating an expectation for higher rates in the future with the yield on the benchmark 10-year Treasury rising to 1.666%. That’s up from a 0.915% on January 4th.
Fed Chairman Jerome Powell is scheduled to speak in a press conference today at 2:30pm. Previously, he has indicated that the FOMC is willing to tolerate some inflation.
Oil moved lower as well with Brent crude for May delivery (BRNK21) down 1.49% or, $1.04 at $67.35.