Stocks Hold Steady as Traders Eye 2026 Fed Outlook: Markets Wrap
(Bloomberg) — Stocks are marking a second straight day of restrained moves as traders await the Fed’s outlook for interest rates in 2026 after an expected cut at Wednesday’s policy announcement.
S&P 500 futures were little changed. A rally in stocks has stalled this week as traders pulled big bets off the table, with mixed economic signals and rifts among Fed policymakers clouding the path for rates.
US Treasuries were steady as well after yields had surged in recent days, as investors reined in expectations for rate cuts amid persistent inflation and fiscal concerns. Globally, the view that rate-cutting cycles are nearing their end has driven a Bloomberg gauge of long-dated government debt to a 16-year high.
“What the market needs at this moment is a clearer policy signal from the Fed,” wrote Linh Tran, market analyst at XS.com.
Traders are anticipating a third consecutive rate cut at Wednesday’s Fed meeting, with attention centered on the latest dot plot, economic projections and comments from Chair Jerome Powell. Investors will also be watching Oracle Corp.’s post-market results at a time when questions abound over the scale of AI investment and how it will translate into earnings.
In Asia, Chinese property stocks surged on expectations for policy stimulus from Beijing and hopes of progress in China Vanke Co.’s debt talks.
A Bloomberg Intelligence gauge of Chinese developer shares jumped more than 4%. Shares of Vanke, which is at the center of investor scrutiny following bond payment delays, jumped as much as 19% in Hong Kong.
Silver extended its rally after breaking above $60 an ounce for the first time on Tuesday, with momentum coming from supply tightness and bets on further monetary easing by the Fed. The white metal rose as much as 1.6% to a record $61.6145 an ounce.
Corporate News:
China Vanke Co. creditors are set to meet Wednesday as the distressed developer makes one more push to win support for a bond extension plan aimed at averting a default. SpaceX is moving ahead with plans for an initial public offering that would seek to raise significantly more than $30 billion, people familiar with the matter said, in a transaction that would make it the biggest listing of all time. Major investors in First Brands Group have offloaded stakes in the bankrupt auto supplier’s debt in recent days, causing the value of its most senior loan to collapse and prompting it to pull forward a lender call to calm nerves. Parkview Group Ltd. has secured a $940 million loan refinancing deal backed by a key Beijing asset, according to people familiar with the matter, ending a months-long saga that had weighed on the Hong Kong developer amid China’s prolonged property crisis. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 8:31 a.m. London time S&P 500 futures rose 0.1% Nasdaq 100 futures rose 0.1% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.3% The MSCI Emerging Markets Index rose 0.3% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.2% to $1.1649 The Japanese yen rose 0.2% to 156.61 per dollar The offshore yuan was little changed at 7.0606 per dollar The British pound rose 0.2% to $1.3320 Cryptocurrencies
Bitcoin was little changed at $92,753.64 Ether rose 0.8% to $3,329.97 Bonds
The yield on 10-year Treasuries was little changed at 4.18% Germany’s 10-year yield advanced two basis points to 2.87% Britain’s 10-year yield advanced two basis points to 4.52% Commodities
Brent crude rose 0.2% to $62.04 a barrel Spot gold fell 0.1% to $4,203.61 an ounce This story was produced with the assistance of Bloomberg Automation.
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