Investing.com | Sep 17, 2020 12:04
By Peter Nurse
Investing.com - U.S. stocks are set to open sharply lower Thursday, with investors disappointed that the Federal Reserve decided against adding more stimulus in order to advance its goal of spurring inflation.
The U.S. central bank announced Wednesday that interest rates would remain anchored near zero through 2023, and promised to keep rates there until inflation rises consistently.
Chairman Jerome Powell also announced that the central bank had lifted its forecasts for growth, employment and inflation for 2020, but warned that parts of the U.S. economy will keep struggling unless lawmakers come forward with further fiscal stimulus.
Congress continues to struggle to reach a deal on a new coronavirus aid bill--although President Donald Trump has injected some life into talks--and thus some investors had hoped the Fed would carry out more of the heavy lifting by injecting more monetary stimulus.
Earlier Thursday, the World Bank's chief economist Carmen Reinhart said the global economic recovery from the coronavirus crisis is likely to take as much as five years.
Economic data Thursday centers around the jobless claims report, due at 8:30 AM ET (1230 GMT). Initial claims are expected to come in at 850,000, which would be a slight tick down from the 884,000 claims the prior week. Continuing claims are expected to be around 13 million, down from 13,385,000 the previous week.
Housing starts for August are due at the same time, and are estimated to be around 1.48 million, a small reduction from 1.49 million the prior month.
In corporate news, cloud software company Snowflake (NYSE:SNOW) is likely to be in focus again after its stock doubled on its first day of trading. As is Uber (NYSE:UBER) after Bloomberg reported that it’s planning to sell part of its $6.3 billion stake in Chinese ride-hailing firm Didi Chuxing to raise cash.
Oil prices fell Thursday, rebalancing after recent strong gains as producers in the Gulf of Mexico took steps to resume output in the wake of Hurricane Sally.
A panel of the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, meets Thursday to review the market, but is not expected to announce any market-moving measures.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.