Investors will continue to digest the implications of the Fed's first rate hike in more than three years today, while geopolitical tensions, yields, and oil prices remain in focus.
Fed policymakers unanimously voted to raise rates 25 basis points, the first hike since 2023, and vowed to fight inflation. Another hike is seen this year, but 2027 is in question.
The Fed rate decision is today at 2 p.m. ET, and futures trading puts hike odds above 90%. It would be the first since 2023. Yields hit 19-year highs Tuesday and oil rose again.
Investors are focused on today’s Fed decision, rising Treasury yields, and elevated oil prices as energy disruptions, inflation concerns, and key economic data shape market expectations.
Tomorrow is expected to bring the first Federal Reserve rate hike since 2023. Oil spiked and tech stocks stumbled Monday amid AI slowdown fears. The 10-year yield topped 5%.
European equities may have support from global growth, improving fundamentals, lower relative valuations, and fiscal spending—plus diversification from the AI cycle.
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