Stocks Today: U.S. futures edge lower as traders reduce bets on Fed rate cuts

Federal Reserve Chairman Powell.Eric Baradat/Getty Images

  • U.S. stock futures were slightly lower ahead of Tuesday’s open.

  • Traders responded to factory data showing activity expanded for the first time since September 2022.

  • According to data from CME Group, there is currently a 40% chance that the Federal Reserve will maintain interest rates at current levels until June.

U.S. stock futures fell pre-market on Tuesday Powerful factory data This led traders to lower their expectations for a rate cut in June.

benchmark S&P 500 Index It looks set to drop around 0.1% at the open, while futures Nasdaq 100 Index and Dow Jones Industrial Average The company was in the red as of 5 a.m. ET.

The sell-off was sparked by better-than-expected ISM manufacturing index data showing activity expanded for the first time since September 2022.

When the U.S. economy looks strong, there is less reason for the Fed to cut interest rates. After factory data on Monday, traders now see a 40% chance the central bank will choose to keep borrowing costs at current levels until June. CME Fedwatch Tools show.

“Stronger ISM data has reignited doubts about how much the Fed will cut interest rates this year,” Deutsche Bank’s Jim Reed said in a research note.

At the same time, the rate of return is 10-Year U.S. Treasury Bond It held steady after rising more than 10 basis points on Monday.

In London, the blue-chip FTSE 100 index rose 0.35% to 7,980 points.

Read the original article business insider

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