- The interest rate meeting is starting soon. It looks like investors are looking to drop some shares before the Fed takes rate action.
- As of 10:00 AM GMT, Futures tied to the Dow Jones Industrial Average have fallen 0.43%. Futures for the S&P 500 fell 0.54%, while those for the Nasdaq 100 fell 0.7%.
The Federal Open Markets Committee will begin its September meeting on Tuesday, and on Wednesday, the central bankers are anticipated to announce an increase in interest rates of 0.75 percentage points. 2.5% is the current federal rate.
The hot August CPI report released last Tuesday caused the worst day for the US stock market in 2 years. Comments from Fed Powell are signaling a hike in interest rates.
After a harsh time for the stock market, mortgage rates reached 14-year highs last week.
The highly likely interest rate hike today is just going to make things worse for Wall Street. “It looks like the Fed is going to raise rates on Tuesday. “We don’t see how they can do it without ruining the stock market,” said Jim Boykin, Chief Investment analyst at Investmentals. He added, “I’m not sure how much lower the stock market can fall, but this hike might be the initiation of a long-term bear session.”
