Markets Cautious Ahead of Fed Meeting as Investors Seek Clarity on Interest Rates Amidst Hot Inflation Data
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The Fed concludes its latest policy meeting later today. Investors are watching for signals on future interest rate moves. Markets have reduced bets on rate cuts this year after recent hot inflation data.
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U.S. stock futures edged slightly lower ahead of the Fed decision. There is some anticipation and nerves around what stance the Fed may take. Earnings reports from Micron and General Mills are also due.
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Samsung shares jumped over 5% on a report that Nvidia is considering using its high bandwidth memory chips. This could benefit Samsung given the AI chip demand.
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UK inflation cooled more than expected in February to 3.4%, offering hope it may fall back to the BoE’s 2% target. This slightly increased bets the BoE may cut rates this summer.
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Oil prices retreated from 4-month highs amid some profit taking ahead of the Fed decision. A stronger dollar also pressured prices. But tight supplies and improved fuel demand continue to support the market.