Stock Markets Rise on AI Hype, But Fed Looms Large
London: 18 March 2024 (TraderMade): Global stock markets are showing guarded optimism today, with US markets poised for a positive open ahead of the crucial Federal Reserve meeting this week.
Key Takeaways
- US stock futures are pointing towards a positive open, led by the tech sector.
- Market participants' focus remains on the Fed meeting and its impact on interest rates.
- European markets are flat ahead of the Fed meeting.
US Markets Led by Tech Rally
The tech-heavy Nasdaq is leading the charge, up over 1% in pre-market trading. This upward trend follows news that AI leader Nvidia kicked off its annual developer conference, fueling investor interest in the sector.
- Alphabet (Google's parent company) jumped nearly 5% on reports of a potential deal with Apple to integrate its AI technology.
- Other chipmakers like Micron and AMD also saw pre-market gains.
Overall Market Cautious
Despite the tech rally, the overall market remains cautious as market participants await the Fed's policy decision on Wednesday. Stronger-than-expected inflation data has led some to question the possibility of a rate cut this year, potentially putting pressure on high-flying stocks.
Uncertainty Remains
The Fed's decision will be the key market focus in the coming days. A hawkish stance from the central bank could dampen the recent market rally. Market participants await the Fed's interest rate decision later this week for clues on the future monetary policy trajectory.
