Stock Futures Rise as Federal Reserve Meeting Begins

New York (Sept 20)  Stock futures moved higher on Tuesday as Federal Open Market Committee members convened for their widely anticipated meeting.

S&P 500 futures were up 0.32%, Dow Jones Industrial Average futures added 0.3%, and Nasdaq futures rose 0.3%. 

Speculation over the Federal Reserve's likelihood of moving on interest rates sooner rather than later has caused waves on Wall Street in recent weeks. A rush of weak data, including snapshots of retail, industrial and inflation numbers for August, have pushed out the chances of a hike to later this year, though Fed members continue to spout more hawkish rhetoric.

The chances of a rate hike in September sit at 12%, according to CME Group fed funds futures. Most analysts are betting on a rate hike in December, which has a 45% likelihood.

The FOMC is set to meet for two days beginning Tuesday, culminating in an announcement, forecasts and press conference from Fed Chair Janet Yellen on Wednesday afternoon.

The Bank of Japan was also on watch as members meet for a two-day discussion on monetary policy. Unlike the Fed, market analysts are mixed on whether the central bank will make a move, including increasing stimulus, this month.

Crude oil prices pulled back on Tuesday as earlier hopes began to fade that a production freeze agreement between Organization of Petroleum-Exporting Countries could come to pass. The chances of a deal rose on Monday after Venezuelan President Nicolas Maduro said a deal between OPEC and non-OPEC countries to curb output was close. Worries over international supply have dragged on prices since oil began its descent more than a year ago.

Source: TheStreet