Premarket trading on U.S. Wall Street showed quiet, mixed activity as investors focused on an expected U.S. interest rate cut. Futures for the S&P 500 and Nasdaq both fell slightly, while Dow Jones industrial futures edged higher.
Most economists and analysts predict a quarter-point U.S. interest rate cut, the first of the year. The central bank has avoided cutting rates while inflation remains above its 2% target. Traders now consider a slowing job market a bigger risk than higher inflation, especially amid ongoing trade tensions.
With the 25-basis-point cut largely expected, attention shifts to the Fed’s quarterly economic projections. Economists forecast the report will signal three reductions this year and at least two next year. Investors hope these measures will support a steady, though slowing, economy.
Treasury yields continued a downward trend. The 2-year yield dropped to 3.51% while the 10-year yield matched a recent low of 4.01%. Analysts see the declines as a reflection of market expectations for easier monetary policy.
Equities saw notable movements. Workday shares jumped 8% after activist investor Elliott Investment Management disclosed a $2 billion stake in the cloud-based software company. Meanwhile, RCI Hospitality Holdings tumbled 6.2% after the New York attorney general charged five executives with bribery and tax evasion. The company operates more than 60 venues across the U.S.
Online ticket marketplace StubHub debuted on the New York Stock Exchange at $23.50 per share under the symbol STUB. Analysts noted that the IPO adds another high-profile technology company to public trading.
Global markets showed mixed performance. Japan’s Nikkei 225 fell 0.3% as exports to the U.S. dropped 13.8%, largely due to tariffs on automobiles. Although Japan reduced auto tariffs from 27.5% to 15%, the decline still reflected a challenging trade environment. Overall Japanese exports fell slightly, offset by growth in Europe and the Middle East.
Australia’s S&P/ASX 200 lost 0.7%, and South Korea’s Kospi dropped nearly 1.1%. Meanwhile, Hong Kong’s Hang Seng surged 1.8%, and China’s Shanghai Composite rose 0.4% on gains in technology shares. Alibaba climbed 2.6%, and Baidu surged almost 16% amid optimism about AI investments.
In Europe, France’s CAC 40 lost 0.3%, Germany’s DAX fell 0.2%, and Britain’s FTSE 100 gained nearly 0.3%. Investors monitored both corporate earnings and global economic data ahead of the Fed’s decision.
For more business updates, visit DC Brief.
