Dow Jones futures advance as traders expect Fed to hold rates steady in July
Dow Jones futures gain 0.14% to trade around 52,450 during European trading hours on Monday. Meanwhile, S&P 500 futures and Nasdaq 100 futures advance 0.26% and 0.50%, trading near 7,520 and 28,920, respectively.
US stock futures gain ground as the Federal Reserve (Fed) is widely expected to hold interest rates steady at its upcoming meeting. However, markets price via the CME FedWatch Tool now reflect a 60.7% probability of a rate hike in September as United States (US)-Iran clashes drive oil prices higher, and resurfacing inflation risks are fueling expectations for rate hikes.
The US has launched its ninth consecutive night of strikes against Iranian targets. In response, Iranian officials declared that the ceasefire between the two nations has been effectively abandoned, opening the door for deepening disruptions to crucial energy pathways through the region's narrow waterways.
Following a tech-led slump driven by a sharp sell-off in semiconductor stocks, major US indexes are looking to upcoming corporate earnings for direction. Last week, the Nasdaq Composite dropped 2.9%, the S&P 500 fell 1.55%, and the Dow Jones lost 0.93%. Leading the downturn, the VanEck Semiconductor ETF plummeted nearly 9%, recording its third weekly drop in four weeks. Investors are now shifting their focus to upcoming high-profile quarterly reports from Alphabet, Tesla, and Intel.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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