Stock futures higher as Fed kicks off policy meeting

Business

(Reuters) – U.S. stock futures rose slightly on Tuesday as investors anticipated a more accommodative policy stance from the U.S. Federal Reserve in a two-day policy meeting this week.

FILE PHOTO: A trader passes by screens showing Spotify on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 13, 2019. REUTERS/Brendan McDermid

A flurry of downbeat economic data this month has supported market expectations that the Fed may reinforce a halt to further rises in interest rates.

The Fed concludes its deliberations with a news conference on Wednesday.

Investors will also be watching out for the central bank’s “dot plot,” a diagram showing individual policymakers’ rate views for the next three years, along with details on its plan to reduce holdings in bonds.

Traders currently expect no rate hikes this year, and are even building in bets for a rate cut in 2020.

Optimism that the Fed will remain less aggressive in raising rates and hopes of a resolution to a bitter trade dispute between the U.S. and China helped the markets claw back most of their losses from late last year.

The benchmark S&P 500 hovers at a five-month high and is just 3.5 percent away from its September record closing high.

At 7:04 a.m. ET, Dow e-minis were up 102 points, or 0.39 percent. S&P 500 e-minis were up 11.25 points, or 0.4 percent and Nasdaq 100 e-minis were up 27 points, or 0.37 percent.

Technology and financial stocks helped Wall Street’s three main indexes rise on Monday, the benchmark index and the tech-heavy Nasdaq’s fifth rise in last six sessions.

The blue-chip Dow’s advance has been hindered by Boeing Co as the world’s largest planemaker faces increased scrutiny in the wake of two deadly crashes of its 737 MAX aircraft in five months.

Boeing shares slipped 0.6 percent in premarket trading on Tuesday after shedding about 12 percent since the March 10 plane crash in Ethiopia.

Chip designer Nvidia Corp jumped 1.6 percent on partnering with Softbank Group Corp and LG Uplus Corp to deploy cloud gaming servers in Japan and Korea later this year.

In economic news, data at 10 a.m. ET is expected to show new orders for U.S.-made goods rose 0.3 percent in January after edging up 0.1 percent the month before.

Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta

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