As Traders Get Cautious Ahead of The Fed, Stocks Stall – Europe Market Wrap

S&P 500 and Nasdaq 100 futures were slightly changed. Nvidia fell 1.4% in premarket trade after the Financial Times reported that a Chinese watchdog has ordered the country’s largest tech firms to cancel orders for the RTX Pro 6000D product.

Global bond markets posted modest gains, with the yield on 10-year US Treasuries falling 1 bps to 4.01%. Gold fell from a record after briefly reaching beyond $3,700 per ounce the previous session.

In the UK, BoE policymakers got yet another unwelcome signal of sticky price pressures ahead of their rates decision on Thursday. Inflation held at its highest in more than 1 1/2 years in August, reinforcing expectations that the MPC will keep rates on hold at 4%.

Alongside the expected 25 bps, investors will also pore over the Fed’s latest quarterly rate projections, known as the dot plot. Back in June, the Fed penciled in three cuts through the end of 2026, compared to nearly six priced in now by traders.

Ahead of Wednesday’s Fed decision, the BoC is expected to cut its benchmark overnight rate to 2.5%, after weak jobs data and a second-quarter contraction.