Wall Street opens mixed as attention turns to FOMC
- FOMC is expected to keep its policy rate unchanged on Wednesday.
- Energy shares turn south in early trade as crude oil prices fall.
- 10-year US T-bond yield recovers to help financial shares.
Major equity indexes in the United States started the day slightly higher on Wednesday as investors are opting out to stay on the sidelines ahead of the important FOMC meeting. As of writing, the Dow Jones Industrial Average was up 0.2% on the day while the S&P 500 was flat and the Nasdaq Composite was losing 0.15%.
Among the 11 major S&P 500 sectors, pressured by a more-than-1% drop seen in crude oil prices, the Energy Index is losing 0.5%. On the other hand, supported by the 1.3% increase in the 10-year Treasury bond yield, the Financials Index is adding 0.6% to lead the gains in the early trade.
Previewing this week's FOMC meeting, “Expectations are much lower for a cut this week, with around an 18% chance. Our US economists recently changed their Fed call and expect 3 cuts of 25bps each at the July, September and December meetings. They also lowered their 2019 growth forecast by 40bps to 1.9%,” Deutsche Bank analysts said.
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