US index futures are pointing modestly higher ahead Wednesday’s open as traders eye key updates regarding both the monetary policy outlook and trade talks.
The latest FOMC verdict has the potential to cast a rather dovish tone over the outlook, on the basis that yesterday’s disappointing consumer confidence number underlines the weakness that’s emerging in the economy.
The recent government shut down has proved damaging and any suggestion that further rate hikes will be side-lined until the year end may be sufficient to lend some support to stocks. On top of this, with domestic and international players alike growing tired of the damaging effects of trade tariffs, pressure is building in Washington to find a resolution here. Again, signs of progress this week have the potential to lift sentiment on Wall Street.
Earnings season continues apace with highlights including legacy names like Boeing (NYSE:BA) and AT&T (NYSE:T) reporting alongside Tesla (NASDAQ:TSLA). Again this has the potential to open the lid on the health of the US economy. Donald Trump may be full of bravado when it comes to the health of corporate America, but cracks were already emerging before the costly government shut down so a slew of bad numbers here could undo much of the potential for upside from the Fed.
Ahead of the open we’re calling the Dow up 70 at 24650 and the S&P 500 up 6 at 2646.