Wednesday's trading: 5 Things to know
Other reports to watch include May's retail sales and the weekly oil inventory report.
Here are the key events taking place on Wednesday that could impact trading.
FED DECISION: The Federal Reserve is expected to ratchet up its fight on inflation Wednesday afternoon with the first 75-basis point rate hike in close to three decades. With inflation unexpectedly accelerating to a fresh 40-year high in May, the Fed is under mounting pressure to move more aggressively to cool demand and slow surging consumer prices. That move would lift the Funds rate to a range of 1.50%-1.75%.
US Federal Reserve Chairman Jerome Powell (Photo by AL DRAGO/AFP via Getty Images | istock / Getty Images)
RETAIL SALES: The Commerce Department reports retail sales for May. Economists surveyed by Refinitiv anticipate consumer spending to rise 0.2% month-over-month, well below April’s 0.9% increase. Excluding the automotive component, spending is seen rising 0.8% in May, up from 0.6% the prior month.
FED EXPECTED TO INTENSIFY INFLATION FIGHT WITH 75-BASIS POINT RATE HIKE
A cashier hands a customer back change after a transaction at a Target Corp. store in Colma, California. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
INFLATION REPORT: Watch for import and export prices for May. Prices of imported goods likely rose 1.1% month-over-month after being unchanged in April. Note that a 2.9% surge in March was the biggest increase in 11 years. Export prices to rise by 1.3% in May, more than double April’s 0.6% rise.
INFLATION TIMELINE: MAPPING THE BIDEN ADMIN'S RESPONSE TO RAPID PRICE GROWTH
HOUSING INDUSTRY: The National Association of Homebuilders is out with its sentiment index for June. It’s anticipated to slip for a sixth consecutive month to a reading of 68, the lowest since July 2020. It would signal that just over two-thirds of NAHB members regard business conditions as good, but rising borrowing costs, input prices and inventories are weighing on the mood of homebuilders.
RECORD HIGH GAS PRICES: WEST VIRGINIA, MONTANA, COLORADO SEE BIGGEST WEEKLY JUMPS
OIL INVENTORIES: The Department of Energy will release its inventory report for last week. Crude stockpiles are expected to fall by just over 1.3 million barrels, following a surprise build of more than 2 million barrels the previous week. Watch for builds of just over 1 million barrels in gasoline inventories.