Here are the key news, trends, and analysis investors need to start their trading day:
1. Stocks look stable ahead of updates after the Fed meeting
Traders on the floor of the New York Stock Exchange.
US stock futures were flat ahead of the Federal Reserve’s two-day meeting on Wednesday afternoon. No policy changes are expected, but Wall Street would like to know if the Fed still considers rising inflation to be temporary and if its latest view will result in an earlier than expected rate hike and a tapering of its massive bond buying program. On the first day of the Fed’s meeting, and after another glowing inflation report, the S&P 500 and Nasdaq broke their three-day winning streaks and broke off Monday’s record closing times. The Dow fell for the second straight year on Tuesday. The 30-share average was about 1.4% off its record closing price in early May.
2. Bond yields in the Fed hold pattern after the latest hot inflation data
June 2021, employees work in a truck manufacturing factory in Zhangjiakou in the northern Chinese province of Hebei.
STR | AFP | Getty Images
3. Last key economic data for the Fed to consider
New townhouses are being built in Tampa, Florida on May 5, 2021 while building materials are in high demand.
Octavio Jones | Reuters
Housing starts and permits for May, the last major economic data before the Fed’s decision, were released on Wednesday morning. New build rose by 3.6% in May to a seasonally adjusted annual rate of 1.57 million units. Building permit activity was also below estimates, falling 3% last month to a seasonally adjusted annual rate of 1.68 million. Both launches and permits have been revised down for April. In addition to its policy statement, the Fed also publishes its quarterly summary of economic outlooks. According to CNBC’s latest Fed poll, economists, fund managers and Wall Street strategists see no reduction before January or the first rate hike close to zero by November 2022.
4th high-level Biden-Putin summit begins in Geneva
Russia’s President Vladimir Putin (L) and US President Joe Biden meet for talks at Villa La Grange.
Mikhail Metzel | TASS | Getty Images
One of the most anticipated geopolitical events of the year began on Wednesday in Geneva with the meeting of US President Joe Biden and Russian President Vladimir Putin. The summit comes as relations between the two nations have deteriorated, with the US accusing Russia of meddling in the elections as well as participating in human rights abuses and recent cyber attacks. Russia has always denied the multiple allegations, saying it was a victim of anti-Russian sentiment in the West. Biden meets Putin at G-7 and NATO summits after a whirlwind of American diplomacy with European allies.
5th study: Regeneron antibody cocktail can save hospitalized Covid patients
View of the corporate and research and development headquarters of Regeneron Pharmaceuticals on Old Saw Mill River Road in Tarrytown, New York.
Lev Radin | LightRakete | Getty Images
According to a study by the University of Oxford, an antibody combination by the US biotech Regeneron reduces the risk of death when given to hospital patients with severe Covid whose own immune systems are not responding. Dr. Scott Gottlieb told CNBC on Wednesday, “This was the subset that the [former] President also likely fell for “when Donald Trump received Regeneron treatment during his battle with Covid last year symptoms and significantly reduces the risk of hospitalization or death.
Disclosure: Dr. Scott Gottlieb is a CNBC employee and a member of the board of directors at Covid vaccine maker Pfizer, genetic testing startup Tempus, health technology company Aetion, and biotechnology company Illumina. He is also co-chair of the Healthy Sail Panel of Norwegian Cruise Line Holdings and Royal Caribbean.