Stock Markets Poised to Open High ahead of FOMC Meeting

Stock indices closed up on Monday and are ready to start high for Tuesday's first trading session.

Timothy St. John•Tuesday, March 19, 2024•2 min read

On Monday, the stock market indices closed with gains, led by the Nasdaq Composite, which gained 0.82%.

The Dow Jones Industrial Average climbed 0.20% with 75 points, and the S&P 500 went up 63%. Most of the stocks on the Dow Jones were able to recover from their recent losses.

The market is staying up ahead of the FOMC meeting, scheduled for Wednesday. The expectation is that the Federal Reserve will not change the interest rates at this time, and any cuts will most likely occur in June. Inflation numbers are not looking as good as most economists expected, which should prevent interest rate cuts for now but will also keep the stock market down a bit until there is some recovery there.

Tech stocks moved the most overall across the indices. AI developments are driving stock trading, helped along by Monday’s Nvidia developer conference. We saw Alphabet stock increase after it was reported that the company would be partnering with Apple for an AI engine to be placed into the upcoming iPhone.

Market Outlook

Inflation fears are holding the market back, and recent reports have made it tough for the market to stay high. We have seen a two-week decline in stock prices, and if the FOMC meeting continues to serve a negative sentiment on inflation, the overall stock prices may remain low.

A few bright spots are peeking out here and there, particularly among biomedical stocks and technology stocks, specifically AI-related stocks. Nvidia recently shot up and then amazingly held onto its gains. Its performance has made a case for investing in any and all AI stocks for their incredible growth potential.

There is worry that AI stocks may be in a bubble and might not remain good investments throughout the year, but current stock price data does not support that view, and stocks like Nvidia and SoundHound have proven to be strong stocks so far this year.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.