By Peter Nurse
Investing.com – US stocks are expected to open moderately on Wednesday as investors cautious ahead of a much-anticipated Federal Reserve meeting that could take a more hawkish policy stance.
At 7 a.m. (1200 GMT), the contract was up 10 points, or 0.1%, was trading 2 points, or 0.1%, higher, while it fell 15 points , or 0.1%.
Major averages edged down on Tuesday, restoring some recent gains with growth stocks, in particular, underperforming as stronger inflation data begged for a strong response from the Fed.
The index lost just over 100 points, or 0.3%, on Tuesday, fell 0.8% and closed down 1.1%.
up 9.6% over one year in November.
Fed officials are expected to announce they will speed up cuts to their bond buying program they announced in November, potentially paving the way for interest rate hikes in the second quarter of next year .
The Fed made its announcement at 2 p.m. ET (7 p.m. GMT), followed 30 minutes later by President Jerome Powell’s press conference. Prior to that, the United States would only grow 0.8% mo in November, less than half of October’s 1.7% growth.
Away from the Fed, investors will continue to study news about the Omicron variant of the Covid-19 virus, particularly after the World Health Organization said on Wednesday that preliminary evidence indicates current vaccines may be less effective. against infection and transmission associated with the new variant, which also carries a higher risk of re-infection.
In the enterprise sector, Oracle (NYSE 🙂 is expected to be in the spotlight after the US tech giant announced the opening of cloud regions in Stockholm and Milan, while Acquisition of the digital world Corp (NASDAQ :), the SPAC that is merging with Donald Trump’s new media company, could benefit from special attention after Trump Media signed a partnership agreement with Canadian company Rumble.
Lennar (NYSE :), REV Group (NYSE :), and ABM Industries (NYSE 🙂 are all expected to report profits before opening.
Oil prices fell on Wednesday, for the third day in a row, amid concerns that the Omicron-induced spike in coronavirus cases will see demand growth weaken next year.
The International Energy Agency said on Tuesday that an increase in Covid-19 cases will reduce global demand for oil at the same time as crude production is expected to increase, particularly in the United States.
Adding to the bearish tone, data from the industry body,, showed inventories fell 815,000 barrels last week, a smaller drop than expected, if corroborated by the United States later. Wednesday.
At 7 a.m. ET, U.S. crude futures were trading down 1.2% to $ 69.86 a barrel, while the contract fell 1.1% to $ 72.88. Both contracts have fallen more than 3% this week.
Additionally, it fell 0.1% to $ 1,770.90 / oz, as it traded 0.1% higher at 1.1272.
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