U.S. Futures Rise 0.3% as Markets Price 92% Odds of Fed Rate Hike
Updated
Updated · CNBC · Sep 15
U.S. Futures Rise 0.3% as Markets Price 92% Odds of Fed Rate Hike
3 articles · Updated · CNBC · Sep 15
Summary
S&P 500 and Nasdaq-100 futures rose 0.22% and 0.3%, with Dow futures up 113 points ahead of Wednesday’s Federal Reserve decision.
CME FedWatch showed a 92% chance of a quarter-point hike, with traders also pricing 45% odds for another move in October and 30% in December.
The decision comes with rates already at 3.5%-3.75% and after White House adviser Christopher Phelan said a hike would be a “mistake” as inflation cools.
August CPI slowed to 3.4% from 4.2% in May, but core inflation rose 0.3% and oil jumped—WTI settled at $105.83 after reported Saudi shipment cancellations.
That mix of sticky price pressure and geopolitical risk has pushed the 10-year Treasury yield above 5% and followed Tuesday declines of 0.45% for the S&P 500 and 0.78% for the Nasdaq.