US stocks mildly lower ahead of the Fed decision

Haresh Menghani FXStreet

Major US equity indices opened flat in a tight range on Wednesday as investors brace for the much awaited outcome of the FOMC meeting later during the day.

During opening trade, the Dow Jones Industrial Average was off around 20-point to 19,892, while the broader S&P 500 Index was absolutely flat around yesterday's closing level of 2,270. Meanwhile, tech-heavy Nasdaq Composite Index traded higher and gained over 5-points to 5,470.

After a two-day meeting, the Fed is widely expected to increase the target range for its Federal-funds rate by 25 bps to between 0.5% and 0.75%. With an imminent Fed rate-hike already priced-in, investors on Wednesday will be looking for clues over the central bank's future monetary policy stance. Given the pace of rally in US equity markets, following Donald Trump's surprise victory in the US presidential election last month, strong hawkish signals might turn riskier-assets - like equities, vulnerable to a sudden sharp correction.

On economic data front, US monthly retail sales recorded a dismal growth of 0.1% in November against expected 0.3%, while PPI surpassed expectations and rose 0.4% in November. Meanwhile, the US industrial production decline for third monthly decline in the previous four and is indicating a possible slowdown in the manufacturing sector.

1. R3 20173.6000
2. R2 20064.3000
3. R1 19989.9000
PP 19880.6000
1. S1 19806.2000
2. S2 19696.9000
3. S3 19622.5000

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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