U.S. Stock Futures Rise Ahead of Fed Meeting and CPI Data

Tech Stocks Lead Gains, Fed Decision and Inflation Data in Focus

U.S. stock index futures edged higher on Wednesday, maintaining positive momentum ahead of the Federal Reserve’s policy meeting and the release of crucial inflation data. The S&P 500 and Nasdaq Composite reached record highs on Tuesday, driven primarily by technology stocks amid growing excitement over AI. However, the Dow Jones Industrial Average lagged, falling 0.3%.

Market Awaits Fed Rate Decision and CPI Figures

The market’s focus is firmly on the conclusion of the Fed’s two-day meeting later in the session, where it is expected to keep interest rates unchanged. However, there is optimism that the Fed may signal potential rate cuts in the future, especially as other central banks like the European Central Bank have already started easing monetary policy.

Despite this optimism, the prevailing view is that the Fed will likely delay any rate cuts until September, given the strong U.S. labor market and elevated inflation expectations. The upcoming release of the May consumer price index (CPI) data will offer further insights into the inflation situation, with expectations that it remained sticky in May, well above the Fed’s 2% annual target range.

Oracle Soars on AI Partnerships

In the technology sector, Oracle stock surged over 8% in premarket trading after the company announced partnerships with Microsoft, OpenAI, and Google to expand its cloud capacity for AI applications. This positive news overshadowed the company’s disappointing quarterly earnings.

Crude Oil Prices Rise on Demand Optimism

Crude oil prices climbed on Wednesday, fueled by a series of optimistic views on global demand. The American Petroleum Institute reported a larger-than-expected decline in U.S. oil inventories, raising hopes of increased fuel consumption during the summer travel season. Additionally, the U.S. Energy Information Administration raised its 2024 world oil demand growth forecast, and OPEC maintained its forecast for relatively strong growth in global oil demand.

Key Points

• U.S. stock futures rise ahead of the Fed meeting and CPI data.
• Tech stocks lead gains, while the Dow Jones lags.
• Markets anticipate potential Fed rate cut signals.
• CPI data expected to show persistent inflation.
• Oracle stock surges on AI partnerships.
• Crude oil prices rise on demand optimism.