Stocks struggled for traction Wednesday and US equity futures made modest gains ahead of a Federal Reserve meeting that’s expected to deliver a hefty interest-rate hike to fight inflation.
S&P 500 futures rose 0.53%; Nasdaq 100 futures rose 0.78%.
Treasuries steadied following their worst rout in decades. Two-year yields retreated after hitting a level last seen in 2007 and the 10-year yield pulled back from near 3.5%.
Traders anticipate a 75-basis-point hike from the Fed Wednesday, the biggest since 1994. A closely watched part of the US yield curve inverted briefly Tuesday, signaling concerns that restrictive policy will sap the economy.
The dollar slipped and the Japanese yen climbed from a 24-year low. Bitcoin stabilized around $22,000. Oil held under $120 a barrel.
Fears of stagflation have driven stocks into a bear market and triggered a stunning selloff in bonds in recent days. Uncertainty is elevated heading into the Fed decision: increments of 50 basis points, 75 basis points and even 100 basis points have all been chewed over by commentators.
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