Information overload as major market events loom
SPY•A packed 24-hour calendar includes the Federal Reserve’s expected rate hold, a possible Bank of Canada hike, earnings from Microsoft and Alphabet, and Britain’s annual budget. Brent crude was above $115 per barrel, while South Korean chipmaker SK Hynix reported net profit had tripled over the past year.
1. Central bank decisions
Markets faced a busy 24 hours, with the Federal Reserve expected to hold rates and investors watching Chair Kevin Warsh’s remarks and the number of dissents for clues about another hike by year-end. The Bank of Canada was expected to raise rates for the first time in three years, while New Zealand’s central bank narrowly held rates steady and the kiwi dollar fell more than 1%.
2. Earnings and energy
Microsoft and Alphabet were due to report earnings after the bell. AI stocks rose further on Tuesday, and SK Hynix shares surged 10% overnight after the company reported a tripling of net profit over the past year and said it planned to return $75 billion to shareholders. Brent crude continued to trade above $115 per barrel.
3. Other developments
Britain’s annual budget was being presented as unlikely to bring major changes to tax, spending or borrowing plans. Qatari mediators gave Iran a draft deal to end the war with the US and Israel, and Tehran was expected to respond by the end of the week; President Trump repeated threats to strike Iran after next week’s midterm elections.
