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Investing.com — Stocks steadied on Wednesday and surged in the afternoon after falling in the morning in anticipation of the Federal Reserve’s latest policy announcement.
As expected, the Fed kept interest rates near zero Wednesday, but said it would speed up the wind-down of its bond purchases and its timeline on rate hikes to curb elevated inflation.
The committee said it would increase the taper of its bond purchases by $30 billion a month in January, double the $15 billion monthly pace announced in November.
The Fed flagged “inflation developments and the further improvement in the labor market,” as factors that drove its decision to speed up the pace of bond tapering.
Data on Tuesday showed producer prices increased more than expected in November from last year, the biggest increase in 11 years, while the data on consumer prices last week indicated the biggest jump in 40 years.
Retail sales rose a disappointing 0.3% last month, but that may be because shoppers started stocking up on holiday stuff earlier this fall, fearing shortages.
According to Reuters, a rotation in spending from goods back to services also held back retail sales. The Commerce Department reported a drop in receipts at electronics and appliance stores, while online retail sales held up. Discretionary spending might also be hampered by higher food and fuel costs.
Here are three things that could affect markets tomorrow:
1. Adobe earnings
Adobe Systems Incorporated (NASDAQ:ADBE) will release its fourth-quarter numbers Thursday. The company is expected to report a profit per share of $3.20 on revenue of $4.09 billion, according to analysts tracked by Investing.com.
2. Rivian earnings
Rivian Automotive Inc (NASDAQ:RIVN)’s third-quarter loss per share is seen at $1.37 on revenue of $921,110.
3. FedEx earnings
FedEx Corporation (NYSE:FDX) is expected to report second-quarter revenue of $22.41 billion and profit per share of $4.27.
—Investing.com staff contributed to this report
