U.S. Futures Rise Ahead of Fed as Russia Shifts Ground

U.S. stock futures

NASDAQ 100 is trading up 3.16% at 13458.56

U.S. stock futures traded higher ahead of the opening in New York on Wednesday, with a sharp turnaround in Chinese markets providing an upbeat start to a day that will be dominated by the Federal Reserve.

By 7:15 AM ET (1115 GMT), Dow Jones futures were up 338 points, or 1.1%, while S&P 500 futures were up 1.2% and Nasdaq 100 Futures were up 1.8%. All three cash indices had made solid gains on Tuesday as crude oil prices tumbled, taking the sting out of one of the factors that have most hurt markets in the last two weeks.

The Fed is expected to hike the target rate for fed funds by 25 basis points to a maximum of 0.5%, from 0.25% currently. Analysts expect at least five more such hikes in the course of the year in an effort to bring down inflation which is running at a 40-year high.

Ahead of the Fed’s decision will be the release of retail sales data for February, which will shed light on how well the consumer is withstanding ever-broader price increases across the economy.

Chinese ADRs are in turbocharged mode after the central bank and government issued coordinated statements pledging support to both the economy generally and financial markets in particular. Chinese cash stock markets had their biggest ever one-day gain in response, after a tumultuous few sessions overshadowed by Covid-19 lockdowns and the threat of forced delisting from U.S. exchanges.

On technical fronts NASDAQ 100 RSI stood at 53.40 and currently it is trading above 5 and 20 days MA & below 50 days MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : NASDAQ 100 – BUY: 13707.54, TARGET: 13905.58, STOP LOSS : 13281.84

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