U.S. equities extended their rebound from four-month lows Tuesday as investors largely looked past a fresh surge in oil prices, reassessing last week’s stagflation fears ahead of the Federal Reserve’s rate decision on Wednesday.
- Micron Technology (NASDAQ:MU) stock rallied to record highs ahead of Wednesday’s earnings results. Check what implied move the option market is pricing in.
President Donald Trump declared the United States “does not need the help of anyone” after most NATO allies declined to join the military operation against Iran, writing that America had already “decimated Iran’s Military” — their navy, air force, anti-aircraft systems, and leadership “at virtually every level.”
West Texas Intermediate crude climbed 1.5% to $94.90 a barrel and Brent crossed back above $101, reversing Monday’s energy-market relief rally after Iran escalated attacks on Persian Gulf energy infrastructure overnight.
Israel also reported killing Iran’s security chief — a development that reinforced the view that the conflict is far from resolved.
The Federal Reserve kicked off its two-day policy meeting, with its rate decision due Wednesday.
No change to the 3.75% fed funds rate is expected. But all attention is on the updated Summary of Economic Projections — the dot plot — as policymakers try to model the economic impact of surging energy prices on both growth and inflation.
Markets are currently pricing in just one 25-basis-point cut, no earlier than December. The 10-year U.S. Treasury yield edged down nearly 2 basis points to 4.20%. The 30-year yield settled at 4.85%.
By midday trading in …
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