U.S. stock index futures rose on Thursday as chipmakers tracked sharp gains in Micron Technology and investors took comfort in the Federal Reserve sticking to its three-rate-cut view for this year.
“The Street went into this meeting expecting three cuts this year, with the first coming by mid-year, and that is what appears to have been communicated, as Chair Powell did not push back against market expectations for a rate cut in June.” Japan’s benchmark Nikkei 225 jumped 2.0% to finish at a record high 40,815.66 after the government reported exports grew nearly 8% in February from a year earlier, in the third straight month of increase.
Some of Wall Street’s nervousness coming into the day washed away after the Fed released a survey of its policy makers, which showed the median still expects the central bank to deliver three cuts to interest rates in 2024. That’s the same number as they had penciled in three months earlier, and expectations for the relief that such cuts would provide are a big reason U.S. stock prices have set records.
The Fed has dangerously little room for error. Cutting rates too early risks allowing inflation to reaccelerate, but cutting too late could lead to widespread job losses and a recession.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: globeandmail - 🏆 5. / 92 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: globebusiness - 🏆 31. / 66 Read more »
Source: BNNBloomberg - 🏆 83. / 50 Read more »