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Stocks - U.S. Futures Rise as Fed Cut Expected

Investing.com - U.S. futures were higher on Wednesday, as investors anticipated a Federal Reserve rate cut for the first time in more than a decade.


A reduction of at least a quarter-point is priced in, with the main focus on the Fed’s policy statement at 2:00 PM ET (18:00 GMT), followed by the press conference a half-hour later with Fed chief Jerome Powell. Markets are looking for hints of further easing in the year. The chance of an additional 25 basis point cut in September is priced at 70%, with a third cut in December above 50%.

Meanwhile, trade talks ended early in Shanghai with no clear sign of progress after U.S. President Donald Trump blasted China on Tuesday for ripping off the U.S. and failing to buy American agricultural products.

Nasdaq 100 futures rose 26 points or 0.3% by 6:40 AM ET (10:40 GMT), while Dow futures gained 63 points or 0.2% and S&P 500 futures were up 4 points or 0.2%.

Apple (NASDAQ:AAPL) stock was set to open near 2019 highs after its earnings beat estimates, jumping 41% even as iPhone sales dropped to below half of its revenue for the first time in seven years. Electronic Arts (NASDAQ:EA) gained 5.6% after reporting a strong fiscal quarter, while Perrigo (NYSE:PRGO) was up 0.7% and Pfizer (NYSE:PFE) gained 0.5%. General Electric (NYSE:GE) rose 1.4% after its earnings came in better than expected.


Semiconductor companies were under pressure as Advanced Micro Devices (NASDAQ:AMD) fell 5.6% after bleak revenue guidance for the third quarter. Micron (NASDAQ:MU) dipped 1.4%, while Edison International (NYSE:EIX) was down 1.7%.

On the economic front, ADP’s nonfarm employment report is released at 8:15 AM ET (12:15 GMT). Earnings also continues on Wednesday, with results from Credit Suisse (NYSE:CS), Fiat Chrysler (NYSE:FCAU), Spotify (NYSE:SPOT), Qualcomm (NASDAQ:QCOM), and others.

In commodities, crude oil rose 0.6% to $58.37 a barrel. Gold futures gained 0.2% to $1,431.90 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 97.847.

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