U.S. stocks looked set to open marginally lower on Tuesday as investors fixed their sights on the outcome of a meeting where the Federal Reserve is widely expected to raise interest rates for the first time this year.
Eight years ago last week, President Barack Obama gave investors a surprisingly hot trading tip. In office less than two months, he commented that we were at “the point where buying stocks is a potentially good deal if you’ve got a long-term perspective.”
U.S. household wealth has hit record levels. U.S. stock prices recently hit all-time highs. Inflation is nearing the Federal Reserve's 2.0 % goal, and the world economy including the once-sick Eurozone has skirted the risk of a deep new downturn.
The dollar recovered a foothold on Monday after its worst three days of losses since early December, the impact of higher U.S. market interest rates turning it positive on the day against both the euro and a basket of currencies.
Traders appear to be in wait and see mode at the start of the week, with attention firmly on the central bank meetings this week, most notably the Federal Reserve on Wednesday when we’ll find out if policy makers successfully guided market expectations in the right direction or went too far.