Chair of the Board of Governors of the Federal Reserve System Jerome H. Powell participates in a panel during a Central Bank Symposium at the Grand Hotel in Stockholm, Sweden, January 10, 2023.
Claudio Bresciani | TT | via Reuters
Here are the most important news items that investors need to start their trading day:
1. Welcome to Fed-ruary
The Federal Reserve is set to announce its latest rate hike on Wednesday afternoon. Markets are expecting a quarter-point increase, which is lower than the past few. Yet, as CNBC’s Patti Domm writes, market pros anticipate Fed Chairman Jerome Powell will continue using a hawkish tone as he describes the Fed’s path forward in its fight against inflation. The expected hike Wednesday would put its rate range at 4.50% to 4.75%, which is close to the Fed’s estimated end point of 5% to 5.25%. The announcement is scheduled for 2 p.m. ET, and Powell will speak at 2:30.
2. New month will test stock rally
Traders on the floor of the NYSE
Source: NYSE
Last month will be a tough act to follow. The S&P 500 posted its best January since 2019, while the Nasdaq recorded its best January in 22 years. All three major indices finished higher Tuesday, putting an exclamation point on the month as bulls look to build momentum after last year’s declines. And while investors will be chewing over what the Fed has to say Wednesday, they’ll have lots more on their minds as earnings season presses forward. Facebook parent Meta reports after the bell Wednesday, and Thursday will be an earnings bonanza, with Apple, Amazon, Starbucks and others due to report. Read live markets updates.
3. Google under AI pressure
Google headquarters in Mountain View, California, US, on Monday, Jan. 30, 2023. Alphabet Inc. is expected to release earnings figures on February 2.
Marlena Sloss | Bloomberg | Getty Images
It’s “code red” at Google as the search giant races to compete with the buzzy artificially intelligent chatbot ChatGPT. Google’s “Atlas” project is testing a chatbot…
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