Wall Street rebounds while waiting for the Fed
Equity markets have been trying to gain momentum since Monday ahead of the highly anticipated Fed meeting on Wednesday. The main stock market indices have been gaining ground since the start of the week, with the S&P 500 gaining 0.69% on Monday after starting the session in the red.
Risky assets appear to be regaining momentum in what looks like a technical rebound given the lack of a catalyst, after several bearish sessions last week.
Tomorrow’s Fed meeting could help the market rebound as market participants have likely overpriced the central bank’s upcoming rate decision. Indeed, the FOMC should content itself with raising its rates by 75 basis points, while some operators are counting on a larger increase (100 basis points or more). The decision to raise rates by 75 basis points could therefore be considered dovish by some, and therefore support the technical rebound in risky assets.
However, the new FOMC projections, particularly concerning inflation and the neutral rate, and Jerome Powell’s press conference will also be worth watching.
Daily price chart of the S&P 500 (CFD US 500) – key levels
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