The Federal Reserve is set to announce an interest-rate cut during today’s meeting, with investors expecting a quarter-percentage point reduction in the federal funds rate. The announcement comes as U.S. stock futures are higher ahead of the decision, snapping a nine-session losing streak for the Dow Jones Industrial Average.
Japanese automakers Honda and Nissan are also making headlines, as they engage in merger discussions. Micron Technology is expected to release its fiscal 2025 first-quarter earnings report today, with analysts predicting significant revenue growth and a return to profitability. Nvidia shares have gained ground after falling for four consecutive sessions, with investors hoping the company can sell its new AI chips despite recent production concerns.
Key takeaways from today’s Fed meeting include:
– Expected interest-rate cut of 0.25%
– Federal funds rate range to be set between 4.25% and 4.5%
– Fed chair Jerome Powell’s remarks to be closely watched
– Release of the Fed’s economic projections, which may impact market movements
Source: https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-december-18-2024-8763275