Dow Jones Forecast: Stocks fall on persistent concerns over higher rates for longer
US stocks are set to kick the final week of September off on a negative note, extending losses from last week and putting the three main indices on track for losses across September. The latest leg lower comes amid lingering concerns of higher interest rates for longer after the FOMC last week and as worries of a US government shutdown rise. The economic calendar is quiet with Minneapolis Fed President Neel Kashkari due to speak later. Amazon also ups its game in the AI race.
EUR/USD, Oil Forecast: Two Trades to Watch
EUR/USD looks to German IFO business climate. Oil climbs higher after a pause last week.
Dow Jones Forecast :Stocks rise but are set for heavy weekly losses
US stocks are heading higher but are set to book steep weekly losses after the hawkish stance from the Federal Reserve on Wednesday. The prospect of higher rates for longer and higher treasury yields is hurting demand for stocks, particularly tech stocks. The Nasdaq is set to fall 3.5% this week and is down 5.5% across the month. US PMI data is due shortly.
GBP/USD, DAX Forecast: Two Trades to Watch
GBP/USD falls for a third day as economic worries rise, PMI data is due. DAX struggles ahead of PMI data.
Nasdaq100 Forecast: The Fed's hawkish pause hits stocks
US stocks are set to extend losses as investors continue digesting the FOMC meeting. As expected, the Fed left rates on hold at 5.25-5.5%. However, the Fed also signaled to another rate hike this year and less easing next year. While the end of the hiking cycle is in sight, the meeting had a clearly hawkish bias which the market has latched onto. As if on cue, US jobless claims also came in much stronger than expected, supporting the Fed's stance.
FTSE 100, EUR/USD Forecast: Two Trades to Watch
FTSE 100 falls post Fed & ahead of the BoE rate decision. EUR/USD tests 1.0630 after the Fed’s hawkish skip.
Nasdaq100 Forecast: Stocks inch higher on hopes that peak rates are here
US stocks are edging higher ahead of the Federal Reserve interest rate decision. The Fed is expected to leave rates unchanged at 5.25%-5.5%. However, the key focus will be on what comes next. The market is pricing in a 70% probability that the Fed will keep rates unchanged again in November. Yet with inflation still over 2%, resilience in the US economy and oil heading towards $100 the Fed is likely to keep the door open for further hikes if needed.
GBP/USD, USD/JPY Forecast: Two Trades to Watch
GBP/USD falls after inflation unexpectedly cools. USD/JPY trades at the 2023 high ahead of the FOMC rate decision.
Dow Jones Forecast: Stocks steady as the 2-day FOMC meeting begins
US stocks are holding steady for a second straight session as investors opt to sit on the sidelines as the FOMC's 2-day meeting kicks off. The Fed is mot expected to hike rates but given recent resilient data and rising oil prices, the Fed is likely to keep the door open for further hikes. Adding to evidence of a resilient economy, the OECD upwardly revised the US growth outlook for this year and next. Separately, Instacart is set to IPO at $30 per share today.
DAX, Oil Forecast: Two Trades to Watch
DAX slips ahead of inflation data. Oil rises on supply concerns, but the rally could be running out of steam.
Nasdaq 100 Forecast: Stocks fall as Fed meeting comes into focus
US stocks are set to open modestly lower amid a cautious market mood, as investors look ahead to Wednesday's Federal Reserve interest rate decision. The Fed is not expected to hike interest rates but after CPI jumped by the most in 14 months in August, the Fed could still maintain a hawkish stance. Meanwhile, the UAW strike continues keeping automobile makers in focus and chipmakers could stay under pressure on rising demand concerns.