Stock futures edged up slightly on Wednesday as Wall Street eagerly awaited a long-anticipated rate decision from the Federal Reserve. This follows a prolonged period of aggressive rate hikes aimed at curbing high inflation. The Fed is set to announce its latest policy decision at 2 p.m. ET, with expectations of a rate reduction of at least a quarter percentage point. However, there is some uncertainty among traders regarding the exact size of the cut.

European markets experienced a decline on Wednesday. The U.K.’s inflation rate for August was reported at 2.2% by the Office for National Statistics, remaining unchanged from July and meeting expectations. This data precedes the upcoming Bank of England meeting, where a decision on interest rate policy is anticipated later this week.

Asia-Pacific markets saw a positive trend on Wednesday, with Australia’s S&P/ASX 200 continuing its multi-day winning streak to reach an all-time high. In Japan, the Ministry of Finance reported that imports and exports for August increased by 2.3% and 5.6%, respectively, compared to the previous year. However, these figures fell short of the Reuters poll estimates, which had projected growth of 13.4% for imports and 10% for exports. Meanwhile, markets in South Korea and Hong Kong remained closed, and mainland China resumed trading following a three-day national holiday.

Economic Calendar

Earnings Calendar

Notable reports for Thursday before the bell include GIS. After the bell includes SCS.

News & Technicals’

This week’s Federal Open Market Committee (FOMC) meeting is shrouded in uncertainty, as analysts debate whether the Federal Reserve will opt for the traditional 25-basis-point rate reduction or take a more aggressive approach with a 50-basis-point cut. The decision is eagerly anticipated by Fed watchers, who remain divided on the likely outcome. In addition to the rate cut decision, the meeting promises to be eventful, featuring updates on future rate cut projections and adjustments to economic estimates.

All seven independent directors of 23andMe resigned from the company’s board on Tuesday, effective immediately. These directors had formed a special committee in March to assist the struggling company in finding a new direction. In a memo to employees, CEO Anne Wojcicki expressed her surprise and disappointment at their decision to step down.

Tupperware Brands, along with some of its subsidiaries, filed for Chapter 11 bankruptcy protection on Tuesday. This decision comes in response to declining demand for its once-iconic food storage containers and increasing financial losses. CEO Laurie Goldman stated in a press release that the company’s financial position has been significantly affected by the challenging macroeconomic environment over the past several years.

At Salesforce’s annual Dreamforce conference in San Francisco, CEO Marc Benioff discussed the practical applications of the company’s new artificial intelligence product, “Agentforce,” with CNBC’s Jim Cramer on Tuesday. Benioff highlighted how the technology can assist overworked medical professionals, particularly those experiencing burnout after the pandemic. He emphasized that Agentforce can handle tasks such as scheduling and various aspects of patient interaction, which he believes will help alleviate the burnout issue among doctors and nurses.

The anticipated rate decision is just around the corner at 2 PM Eastern today followed by the Powell press conference.  The entire financial world will be tuned into this decision and traders should be prepared for just about anything from big point moves and fast intrada whipsaws as the market reacts.  Will it be a 25-basis point or 50-basis point?  Will the market celebrate or be disappointed?  We will soon find out, so buckle up for a wild afternoon as the market reacts.

Trade Wisely,

Doug