Stock Futures Show Minor Decline Pre-Fed Decision
Before the Federal Reserve’s interest rate decision, stock futures indicate a slight downturn. The Dow Jones futures are down by 50 points, approximately 0.15%. The after-hours market shows Yum China Holdings taking a 9.2% plunge due to missing revenue estimates in the third quarter. Similarly, Match Group, the company behind Tinder, experienced a 6.9% drop due to disappointing fourth-quarter revenue projections. Advanced Micro Devices, however, maintained stability despite fluctuations throughout the day.
Focus on Fed’s Interest Rate Decision
The Fed’s announcement on interest rates is the main focus. Experts expect no change, with the official statement set for 2 p.m. ET, followed by a news conference at 2:30 p.m. ET. While the public announcement might not signal significant alterations, analysts suggest the Fed will continue efforts to manage financial conditions behind the scenes.
Stocks Recovering after Dismal October
After a challenging October, major indices faced their third consecutive month of losses. However, the stock market has displayed signs of recovery this week, showing some improvement in trading.
October’s Decline
In October, the Dow and the S&P 500 faced a decline of 1.4% and 2.2% respectively, marking a three-month losing streak, a trend not seen since March 2020. The Nasdaq Composite also decreased by 2.8% during the same period.
November’s Prospect
November is historically known as a strong month for markets, but investors are vigilant about the surge in bond yields. The benchmark 10-year U.S. Treasury yield hit a notable point, crossing the 5% mark for the first time since 2007. This rise has raised concerns about the consequences of prolonged high-interest rates.