Market Futures Rise and Yields Ease as Investors Await Fed Forecasts

The S&P 500, Nasdaq Composite, and Dow Jones opened slightly higher as investors await the Federal Reserve's guidance. Yields eased with the 10-year Treasury yield falling 4 basis points to 4.33% and the 2-year yield falling 5 basis points to 5.06%. While no rate move is expected, there is a 42% chance of another rate cut this year, with expectations pushed out until July 2024. The focus will be on the Fed's guidance, with expectations of one more rate hike in 2023 and the removal of one 2024 rate cut to maintain a hawkish tone. The Fed's message is likely to convey that higher policy rates remain an option until the economy slows and inflation reaches 2%.