U.S. Stock Market Holds Its Breath: Anticipation Over Interest Rate Decision in New York
The upcoming trading week is shaping up to be an interesting one, with several key developments expected to influence the stock market today.
According to Index Radar, the record run on US exchanges could continue after the Federal Reserve's rate decision, as the probability of stock market gains over the next six months rises to a notable 90 percent when the S&P 500 is already gaining momentum before the decision.
One company that could be in focus is Workday. Shares of the cloud software specialist rose 9.7 percent in pre-market trading, with Evercore ISI maintaining its 'Outperform' rating for the company. The risk-reward profile for Workday improved after recent negative sentiment, according to Evercore ISI.
Another company to watch is Zoom, the video conferencing specialist, which could be worth a look during trading as it is hosting an investor day. However, the primary contact for Zoom shares for the next trading phase is not explicitly stated in the available information. Typically, the primary contact for shares of Zoom Video Communications would be the company's investor relations department or the designated brokerage handling the stock on NASDAQ, where Zoom is listed.
In the tech sector, Nvidia is likely to be in focus mid-week due to China's cybersecurity authority CAC instructing the country's largest technology companies to stop buying certain AI chips from Nvidia. This instruction further escalates the dispute over high-tech chips between China and the US. Nvidia shares fell 1.1 percent in pre-market trading.
Meanwhile, Chinese search engine operator Baidu's AI stock rally continued in pre-market trading with a gain of 8.5 percent. Jefferies has reaffirmed its buy recommendation for Baidu and significantly raised its price target to $157, indicating a potential further upside of over a quarter.
On a different note, Fedex fell 0.6 percent in pre-market trading after Evercore analysts downgraded the company to 'In Line.' Due to economic headwinds, the downgrade was issued by Evercore analysts.
In the bond market, Benoit Anne, a bond expert at MFS Investment Management, has commented that a rate cut is imminent. However, he also noted that data dependency and forecasts are not well suited to each other.
It's important to note that Jerome Powell, the Fed Chair, is not expected to communicate future monetary policy intentions. After investors have already priced in a significant easing, the room for surprise is large.
As always, it's crucial for investors to stay informed and make decisions based on the latest market developments.
