U.S. stock futures rose on Monday night after the S&P 500 dropped back into bear market territory ahead of the Federal Reserve’s two-day policy meeting this week.
Dow Jones Industrial Average futures rose by 67 points, or 0.2%. S&P 500 and Nasdaq 100 futures climbed 0.3% and about 0.5%, respectively.
Those moves got here after intense selling of stocks through the regular session on Wall Street. The S&P 500 slumped 3.9% to its lowest level since March 2021, and falling greater than 21% from its January record.
Meanwhile, the Dow tumbled greater than 876 points, or 2.8%, which is roughly 17% off its record high. The Nasdaq Composite dropped nearly 4.7%, or greater than 33% off its November record.
Investors are bracing themselves for the opportunity of a larger-than-expected rate of interest hike this week after CNBC’s Steve Liesman confirmed on Monday that the Federal Reserve will “likely” consider a 75-basis-point increase, which is larger than the 50-basis-point hike many traders had come to expect. The Wall Street Journal reported the story first.
Some investors are also expecting a more hawkish tone from the central bank after last week’s inflation reports showed prices running hotter-than-expected.
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“I feel they will do 75 basis points,” Ed Yardeni, president of Yardeni Research, said during CNBC’s “Closing Bell” on Monday.
“I feel that Powell on Wednesday when he does his press conference will indicate that there will be one other one coming on the July meeting and perhaps one other one on the September meeting. I feel it is time for him… to indicate that he really is worried about inflation,” he continued.
Elsewhere, shares of Oracle jumped nearly 9% in prolonged trading after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business.
Wall Street can also be expecting the newest reading on the May producer price index on Tuesday before the bell at 8:30 a.m.