State Street Global Advisors managing director Michael Arone discusses what Federal Reserve chair Jerome Powell will talk about on Wednesday and later says the software and services industry is highly successful in the stock market.
U.S. stocks are pointing to a higher open on Wall Street ahead of the conclusion of the Federal Reserve’s two-day policy meeting.
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The major futures indexes are indicating a rise of 0.4 percent when trading begins.
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Fed Chairman Jerome Powell will face questioning via a virtual news conference Wednesday afternoon following the latest monetary policy meeting.
The Fed will also provide its outlook for economic growth, inflation and unemployment.
Powell will likely drive home the message that the economy remains in need of extraordinary help despite recent despite glimmers of a possible recovery, including a government report Friday that jobs were surprisingly added in May.
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In Asia on Wednesday, Japan’s Nikkei edged 0.2 percent higher after the government reported a sharp drop in machinery orders in April. The Hang Seng in Hong Kong slipped 0.1 percent lower and China’s Shanghai Composite index dropped 0.4 percent after data showed a drop in producer prices and lower than expected inflation in April.
In Europe, London’s FTSE rose 0.5 percent, Germany’s DAX added 0.7 percent and France’s CAC was 0.7 percent higher.
Apart from unabated numbers of infections in some U.S. states, experts worry surging numbers of coronavirus cases in developing regions with shaky health systems could undermine efforts to halt the pandemic.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 27272.3 | -300.14 | -1.09% |
| SP500 | S&P 500 | 3207.18 | -25.21 | -0.78% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9953.753005 | +29.01 | +0.29% |
In the Tuesday session, the S&P 500 lost 25.21 points to 3,207.18. The Dow Jones Industrial Average dropped 1.1 percent, but the Nasdaq composite rose 0.3 percent as technology and communications services stocks advanced.
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Oil prices fell back on Wednesday, with benchmark U.S. crude oil for July delivery down 81 cents at $38.13 per barrel in electronic trading on the New York Mercantile Exchange. It gained 75 cents to $38.94 a barrel on Tuesday. Brent crude oil for August delivery gave up 69 cents to $40.49 a barrel.
The Associated Press contributed to this article.
