U.S. stocks were set to open slightly lower Wednesday morning as a key policy decision from the Federal Reserve loomed.
Around 7 a.m. ET, Dow Jones Industrial Average futures indicated a loss of 27 points at the open. S&P 500 and Nasdaq 100 futures also pointed to slight losses.
The Fed is expected to cut rates by 25 basis points despite a recent fall in energy prices. This would be the bank’s second rate cut in a decade, after the central bank decided to lower the Fed Funds Rate to a range of 2.0%-2.25% in July. Chairman Jerome Powell will address the media on Wednesday at 2:30 p.m. ET.
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Treasury yields fell ahead of the Fed’s announcement. The benchmark 10-year rate dipped to 1.77% from around 1.8%. The 2-year yield traded at 1.7%.
The Fed meeting takes place a couple of days after President Donald Trump called the central bank “boneheads” and asked for zero or even negative rates. The meeting also takes place as China and the U.S. try to reach a deal to end their ongoing trade war.
Trump said on Wednesday that a deal could come soon. China and the U.S. are expected to meet next month. The trade war has dampened the outlook for global economic growth and corporate profit expansion.
FedEx slashed its fiscal 2020 earnings guidance. The company also posted weaker-than-expected quarterly results, citing “a weakening global macro environment driven by increasing trade tensions.” FedEx shares dropped 11% in the premarket Wednesday.
Source: cnbc.com | Original Link