U.S. stock futures are set for a flat open on Thursday after the Dow, S&P 500, and Nasdaq posted gains over 1 percent yesterday with investors positively digesting President Trump’s address before a joint session of Congress on Tuesday and warmed up to the view from the Federal Reserve that further rate hikes could help to cool the U.S. economy.
An interest rate hike could be on the horizon for the U.S. economy as soon as the Federal Reserve’s next Fed meeting in mid-March which is considered a “live meeting” and will see a press conference from Fed Chair Janet Yellen and updated economic projections.
The market is beginning to price in the possibility of a rate hike coming up on March 15th when the Federal Reserve concludes their 2 day policy meeting.
According to CME’s Fed Watch tool, the probability of a .25 percent basis point rate hike with the federal funds at .75-1.00 percent has jumped in recent days and now stands at 77.5 percent, up from 66.4 percent on the previous day.
Eurozone Inflation Rising
Eurozone inflation has been rising in recent months and is now above the ECB’s 2 percent target for the first time in 4 years.
Eurozone inflation rose to 2 percent in February, according to Eurostat, up from 1.8 percent in January 2017.
Snapchat parent Snap will debut on Thursday and will be valued at $24 billion after the IPO pricing. The initial IPO stock pricing will be set at $17.00 a share.
Sessions Under Fire
Trump’s newly confirmed Attorney General Jeff Sessions is face heat on Thursday after a Washington Post story revealed that he met twice with a Russian ambassador last year as a U.S. Senator but failed to disclose that information during his confirmation hearings.
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