US stock futures held steady on Wednesday as investors awaited news on potential interest rate cuts from the Federal Reserve. The S&P 500 and Dow Jones futures were largely unchanged, while Nasdaq 100 futures saw slight gains. All eyes were on the Fed’s two-day meeting, with analysts speculating on the possibility of a shift in the central bank’s stance after recent inflation and economic strength indicators.
Investors are cautious about potential changes in the Fed’s rate cut forecasts, with uncertainty looming over the stock market and the recent rally. The “dot plot” will be closely watched for any adjustments in rate projections for 2024. Bonds could face pressure post-Fed statement, as the 10-year Treasury yields remained slightly lower at around 4.28% after a recent increase of over 20 basis points.
On the corporate side, luxury conglomerate Kering warned of a 20% decline in sales at its Gucci brand, leading to a sharp drop in its stock value. Shares of Kering plummeted by as much as 15% in Paris, wiping off $7.6 billion from its market capitalization. This news highlighted the potential impact of economic uncertainties on individual companies within the market.