From the Wall Street Journal’s “Stock Futures Rise After a Rocky Week as Fed Rates Call Looms” posted early Wednesday.
U.S. stock futures posted strong gains ahead of the Federal Reserve’s announcement that is expected to provide clarity on coming interest-rate rises—the prospect of which spooked markets this week…
Stocks have been rocked in recent days by expectations that the Fed will embark on a series of rate increases this year to temper heightened inflation. The prospect of a shrinking balance sheet and higher rates has prompted some to sell risky assets, including shares of technology companies that promise future returns, and cryptocurrencies. Investors are also monitoring rising tensions between Russia and Ukraine that have drawn the focus of NATO allies.
Economists expect the Fed to confirm expectations that it will start raising rates in March when it releases its statement at 2 p.m. ET. Traders in interest-rate futures markets are betting that the Fed will increase rates four or five times this year, according to CME Group.
“Today the focus is going to be on the Fed,” said Luca Paolini, chief strategist at Pictet Asset Management. “It’s more about the tone of the press conference. People may have an expectation that given the market turmoil and the geopolitical tensions the Fed may tone down its rhetoric.”
Charts: Yahoo!Finance sees a bearish double top. Max pain has moved down to $167.50 with the same call mountain at $170.