2023-09-19 10:32:33
U.S. stock index futures rose Tuesday ahead of a two-day U.S. Federal Reserve meeting on monetary policy and as investors await the debut of grocery delivery app Instacart on the Nasdaq to assess a potential recovery in the IPO market.
Maplebear Inc, Instacart’s parent company, got a diluted valuation of $9.9 billion as its IPO was priced at $30 per share, the high end of the reported price range.
Last week, Arm Holdings made a splashy market debut, raising hopes for a rebound in the IPO market.
Investors are also focused on the Fed meeting later today, at which the central bank is widely expected to keep its benchmark interest rate within the current range of 5.25% to 5.50%.
Recent economic data indicates that core inflation is moving closer to the Fed’s 2% target, although steadily rising oil prices remain a cause for concern. Crude prices have risen for three straight weeks and benchmark indices are at 10-month highs.
“The market narrative has once once more shifted from optimism regarding controlling inflation to fears of a re-acceleration of inflation driven by robust consumption data and rising prices oil,” said Matthew Morgan, head of fixed income at Jupiter Asset Management.
“Central banks should pause and wait to see the impact of what they have already done rather than risk serious harm to the economy.
Investors will also monitor the Fed’s quarterly report on economic projections to gauge the long-term policy outlook of participating members.
According to the CME’s FedWatch tool, traders have fully priced in a Fed pause on Wednesday, at the end of its meeting, with a 59% probability that interest rates will remain unchanged in November and December.
With most key inflation data out of date, investors will be keeping an eye on U.S. housing data for August.
As of 5:32 a.m. ET, the Dow e-minis was up 49 points, or 0.14%, the S&P 500 e-minis was up 7.25 points, or 0.16%, and the Nasdaq 100 e-minis was up 24.5 points, or 0.16%.
Fintech company Block Inc fell 1.1% in pre-market trading as CEO Alyssa Henry of its unit, Square, will leave the company following more than nine years.
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