WASHINGTON (dpa-AFX) - Stocks are likely to move to the downside in early
trading on Wednesday, extending the sell-off seen over the course of the
previous session. The major index futures are currently pointing to a lower open
for the markets, with the S&P 500 futures down by 0.3 percent.

Concerns about the outlook for interest rates may continue to weigh on the
markets ahead of the Federal Reserve's monetary policy announcement this
afternoon.

While the Fed is widely expected to leave rates unchanged, traders will pay
close to the wording of the accompanying statement along with Fed Chair Jerome
Powell's post-meeting press conference.

'Yesterday's late selloff characterized a shift in the market's mindset from
hopes of monetary accommodation to acceptance that higher rates will persist,'
said John Lynch, Chief Investment Officer for Comerica Wealth Management.

'Consequently, today's big news will likely come from Treasury's refunding
announcement rather than the FOMC,' he added. 'Any signs of increased liquidity
should enable economic demand, and risk assets, to regain their footing.'

Despite the downward momentum for the broader markets, shares of Amazon (AMZN)
are likely to see initial strength after the online retail giant reported better
than expected first quarter results.

In U.S. economic news, payroll processor ADP released a report showing private
sector employment increased by more than expected in the month of April.

ADP said private sector employment shot up by 192,000 jobs in April after
jumping by an upwardly revised 208,000 jobs in March.

Economists had expected private sector employment to climb by 175,000 jobs
compared to the addition of 184,000 jobs originally reported for the previous
month.

'Hiring was broad-based in April,' said ADP chief economist Nela Richardson.
'Only the information sector - telecommunications, media, and information
technology - showed weakness, posting job losses and the smallest pace of pay
gains since August 2021.'

Shortly after the start of trading, the Institute for Supply Management is
scheduled to release its report on manufacturing activity in the month of April.
The ISM's manufacturing PMI is expected to edge down to 50.0 in April from 50.3
in March.

The Commerce Department is also due to release its report on construction
spending in the month of March. Construction spending is expected to rise by 0.3
percent in March after falling by 0.3 percent in February.

Additionally, the Labor Department is scheduled to release its report on job
openings in the month of March. Job openings are expected to decrease to 8.690
million in March from 8.756 million in February.

Stock prices went down south on Wall Street on Tuesday, sliding lower and lower
after a weak start, as concerns about inflation and uncertainty about the Fed's
interest rate moves rendered the mood bearish. Investors digested a mixed batch
of earnings updates and some disappointing economic data.

The major averages all ended sharply lower, with the Nasdaq suffering a more
pronounced loss. The Dow ended down by 570.17 points or 1.5 percent at
37,815.92. The S&P 500 dropped 80.48 points or 1.6 percent to 5,035.69, while
the Nasdaq tumbled 325.26 points or 2.0 percent to settle at 15,657.82.

In overseas trading, Japanese and Australian stocks moved lower on Wednesday,
with most markets in the Asia-Pacific region closed for Labor Day. Japan's
Nikkei 225 Index dipped by 0.3 percent, while Australia's S&P/ASX 200 Index
slumped by 1.2 percent.

With most major European markets also closed on the day, U.K. stocks are little
changed. The U.K.'s FTSE 100 Index is currently up by less than a tenth of a
percent.

In commodities trading, crude oil futures are tumbling $1.38 to $80.55 a barrel
after sliding $0.70 to $81.93 a barrel on Tuesday. Meanwhile, an ounce of gold
is trading at $2,306.60, up $3.70 compared to the previous session's close of
$2,302.90 Tuesday, gold plunged $54.80.

On the currency front, the U.S. dollar is trading at 157.78 yen compared to the
157.80 yen it fetched at the close of New York trading on Tuesday. Against the
euro, the dollar is trading at $1.0681 compared to yesterday's $1.0666.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX