Here’s why the next 72 hours are critical for markets
CNBC’s Investment Committee debate how important the next few days are for the rally as Mega Cap earnings, the Fed Decision and a potential government shutdown hang over stocks.
Watch the full video in the player above.
S&P 500 futures were near the flatline Tuesday night in the US ahead of the Federal Reserve’s interest rate decision and earnings reports from major tech companies.
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In Tuesday’s regular trading, the S&P 500 advanced 0.4 per cent, reaching an all-time high and closing at a record. The Nasdaq Composite gained 0.9 per cent. The 30-stock Dow fell more than 400 points, weighed lower by a nearly 20 per cent plunge in UnitedHealth.
Wednesday in the US will bring the Fed’s first rate decision of the year. The central bank is widely expected to keep its benchmark interest rate steady at a target range of 3.5 to 3.75 per cent, but traders will be seeking hints on longer-term changes to monetary policy. Fed funds futures trading suggests two quarter percentage point cuts by the end of 2026, according to the CME FedWatch Tool.
“The current US economic outlook remains positive, with ongoing growth and a labour market that, although somewhat soft, has stabilized. Inflation continues to run above the Fed’s target, leaving little justification for immediate rate cuts,” said Christian Hantel, portfolio manager at Vontobel Asset Management.
“Instead, investors should look to the March and June FOMC meetings as potential opportunities for policy adjustments, though these could be pushed into the second half of 2026 if conditions warrant,” Hantel added. “All eyes will be on Chair [Jerome] Powell for any signals about the Fed’s openness to further easing, but for now, the central bank’s cautious, meeting-by-meeting approach seems set to continue.”
Earnings from a slate of major technology companies are on deck. Microsoft, Meta Platforms and Tesla are set to post their quarterly financial results Wednesday after the closing bell. Apple will post its results on Thursday.
CNBC
Originally published on CNBC
