Let’s explore the reason for cautious stance of Stocks ahead of Federal Reserve rate decision.
- Investor are cautious ahead of Federal Reserve rate decision to keep the key rates near 0% to support the ailing US economy.
- Still US $1 trillion package is pending which can be announced anytime.
- US stocks closed flat with negative sentiment ahead of these key decisions
- Asian markets are trading mix tracking US stocks.
- SGX Nifty is in green note this morning. (8:30 A.M.)
Why US markets closed in flat ahead of Federal Reserve rate decision?
- US investors are cautious ahead of Federal Reserve key rates decision on Wednesday which will set tone for next market move. Since covid-19, Federal Reserve stance is accommodative with near 0% rate of interest of key rates.
- US government plan to announce $1 trillion stimulus package is taking time that is making investor nervous of how long it will take time? This is another reason for flat closing of US stocks.
- Asian markets this morning are trading mix as investors are awaiting Federal Reserve decision on key rates.
- Dow Jones Industrial Average gained by 205.49 points, or 0.77%, close at 26,379.28.
- The S&P 500 rose by 20.97 points, or 0.65%, ends at 3,218.44.
- Nasdaq Composite Index increased by 134.18 points, or 1.27%, close at 10,402.09