1. Crypto Dips Amid Rate Jitters
Bitcoin$BTC fell 0.8% to $67,372.3 by 01:34 ET on Wednesday, extending its decline from Tuesday's low of $66,000. Traders are cautious ahead of the Federal Reserve's interest rate decision and key inflation data. High rates diminish the appeal of cryptocurrencies, leading to recent market volatility.
2. Futures Muted
U.S. stock futures were largely flat on Wednesday. By 03:38 ET, Dow futures were up 30 points (0.1%), while S&P 500 and Nasdaq 100 futures remained unchanged. The S&P 500 and Nasdaq Composite hit record highs on Tuesday, boosted by Apple shares.
3. Fed Decision Ahead
The Fed is expected to keep interest rates at 5.25%-5.5%. Attention will be on the Fed's "dot plot" projections for future rates and Chair Jerome Powell’s statement. Recent strong job data has decreased expectations of a rate cut in September.
4. CPI Looms Large
The May consumer price index (CPI) report, due shortly before the Fed meeting concludes, could influence the Fed's rate outlook. Analysts predict stable annual inflation but slight monthly deceleration.
5. Chinese Inflation Weaker
China’s consumer prices rose 0.3% year-on-year in May, below expectations. Producer prices fell 1.4% year-on-year, showing signs of industrial recovery.
6. Crude Prices Rise
Crude prices rose on optimism about global demand. U.S. crude futures increased 0.8% to $78.52 per barrel, while Brent climbed 0.6% to $82.41. Reduced U.S. oil inventories and positive demand forecasts from the EIA and OPEC contributed to the gains.
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