Finance News

Inventory futures are inches greater following the Fed's resolution to aggressively cease shopping for property

Federal Reserve Chairman Jerome Powell posts remarks on screens while a trader works on the floor of the New York Stock Exchange (NYSE) in New York City on December 15, 2021.

Andrew Kelly | Reuters

U.S. stock futures were slightly higher on Wednesday night after the Federal Reserve signaled it would be aggressive on tapering, including three rate hikes in 2022.

Futures on the Dow Jones Industrial Average gained 0.1%. S&P 500 and Nasdaq 100 futures added 0.1% and 0.2%, respectively.

Stocks traded in negative territory during Wednesday's regular session, rising ahead of Fed chief Jerome Powell's press conference that afternoon to close the two-day meeting of the Federal Reserve's Open Markets Committee. The Dow added 383 points, or 1.08%. The S&P 500 rose 1.63% and the tech-heavy Nasdaq Composite rose 2.15%.

"It appears that the Fed was successful in communicating this news upfront, and although the stock market climbed higher during the press conference, the sectors that are leading the market (such as utilities and healthcare) are both very defensive sectors and at some point Concern about the future path of the economy, "said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.

Health stocks UnitedHealth and Amgen gained on Wednesday, up 3.1% and 2.6%, respectively.

The Fed will begin slowing the pace of its bond purchases in January and will only buy $ 60 billion in bonds in the future, compared to $ 90 billion in December. That decision follows recent inflation data, which showed a 6.8% increase in November, higher than expected and the fastest since 1982.

"The notion that inflation rates are temporary has been thrown out the window for good by the Fed and recent policy adjustments reflect a committee that doesn't want to miss the next train leaving the station," said Charlie Ripley, senior investment strategist at Allianz Investment Management.

More economic data will be released Thursday, including home construction start and jobless claims at 8:30 a.m. EST.

Adobe and Accenture are expected to release their quarterly results before the opening bell. FedEx and Rivian will report after the bell.

Related Articles