Dow futures jump 400 points as Wall Street tries to rally for second day, Fed decision ahead

Stock futures rose on Wednesday as traders tried to take advantage of strong gains from the previous session, while Wall Street awaited the latest monetary policy decision from the Federal Reserve.

Dow Jones Industrial Average futures climbed 402 points, or 1.2%, while S&P 500 futures rose 1.3%. Nasdaq 100 futures jumped 1.9%.

Micron Technology was among the best performing stocks in the S&P 500 pre-market, gaining more than 4%. Shares of Starbucks also climbed 3.5%, while Dow member Boeing rose 2.3%.

Several Chinese stocks soared more than 20% after China signaled support for overseas listings, after days of delisting concerns dragged them down. Pinduoduo jumped 35% and DiDi Global 41%.

The futures rallied in part on signs that a ceasefire might be possible in the Russian-Ukrainian war.

Ukrainian President Volodymyr Zelenskyy said a peace deal was starting to “seem more realistic” in an address to the nation on Tuesday. Russian Foreign Minister Sergei Lavrov told the BBC there was “some hope for a compromise”. Russian state media citing the Kremlin echoed similar sentiments overnight.

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The war between Ukraine and Russia has caused repercussions in global financial markets, leading to a sharp rise in commodity prices and a decline in stocks. However, some commodities have cooled in recent days as the US stock market struggles to find its footing.

U.S. oil was trading at around $95.70 a barrel on Wednesday, after hitting a multi-year high of $130 earlier this month.

Stocks, meanwhile, are coming off a stellar session in which the Dow Jones jumped nearly 600 points, while the S&P 500 snapped a three-day losing streak.

Big Fed Decision Ahead

Granted, all eyes are on the Fed on Wednesday as the central bank wraps up a key two-day policy meeting.

The Fed is expected to hike rates by a quarter point, the first hike since 2018. Observers also expect the central bank to come up with a new quarterly forecast that could point to five or six more hikes this year.

“I guess it’s going to sound a little more hawkish than people like, and it’s going to be a little tough to digest, especially in fixed income markets,” said David Zervos, chief market strategist. at Jefferies, on the “Closing Bell” show on Tuesday. “I think the stock market might digest it a little better, but it’s going to be hard to swallow.”

The Fed is expected to announce an interest rate decision and economic projections at 2 p.m. Wednesday, which will be followed by a briefing from Federal Reserve Chairman Jerome Powell.

Dow futures jump 400 points as Wall Street tries to rally for second day, Fed decision ahead

Source link Dow futures jump 400 points as Wall Street tries to rally for second day, Fed decision ahead

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