Stock index futures moved sideways Tuesday following some mixed numbers on the housing market.
“It’s (another) waiting day ahead of tomorrow’s FOMC meeting. Equities are steady, but Treasury yields are edging higher after yesterday’s small fall and Brent remains around $95p/b,” SocGen’s Kit Juckes writes. “The market doesn’t expect a Fed hike but the dot-plot, which currently suggests there will be one more this year before a steady fall, thereafter, could see cuts pushed further out, while the tone of the statement is certain to be hawkish, as the FOMC reinforces the ‘higher for longer’ message.”
“The US rates market prices in virtually no chance of a rate hike tomorrow, and just shy of a 50% chance of a 25bp hike before Christmas.”
August housing starts plunged to an annual rate of 1.283M. That’s the lowest level since June 2020. Economists had expected them to hold fairly steady at 1.44M.
But building permits unexpectedly rose to 1.543M.
See the stocks making the biggest moves this morning.