5 Things to Know Before the Stock Market Opens

Investors are expecting today’s Federal Reserve meeting to end with the announcement of another interest-rate cut; U.S. stock futures are higher as the Dow Jones Industrial Average looks to snap a nine-session losing streak; Japanese automakers Honda (HMC) and Nissan (NSANY) are in merger discussions; Micron Technology (MU) stock is higher in premarket trading ahead of the chipmaker’s earnings report today; and Nvidia (NVDA) shares are rising after falling for four consecutive sessions. Here’s what investors need to know today.

1. Investors Anticipate Federal Reserve Rate Cut, Powell Remarks

Investors will be closely watching today’s interest-rate announcement after the two-day Federal Open Markets Committee (FOMC) meeting concludes. Officials are widely expected to lower the federal funds rate by a quarter-percentage point to a range of 4.25% to 4.5%. Following the decision, Fed chair Jerome Powell is scheduled to take media questions, and his remarks can impact market movements. Market watchers also are anticipating the release of the Fed’s economic projections, which show where officials believe inflation and interest rates are heading.

2. US Stock Futures Higher Ahead of Fed Decision

U.S. stock futures are higher ahead of the FOMC decision and comments from Fed chair Powell. After the Dow Jones Industrial Average notched its ninth consecutive losing session yesterday for its longest skid since 1978, futures are up by 0.3%. S&P 500 and Nasdaq futures are higher by similar margins. Bitcoin (BTCUSD) is pulling back from recent highs to trade below $105,000, while the 10-year Treasury note is hovering around 4.4%. Crude oil futures are 0.6% higher.

3. Honda, Nissan in Merger Discussions

Nissan shares soared about 24% and those of Honda slipped 3% in Tokyo trading Wednesday after the Japanese automakers confirmed a Nikkei report that said they are in discussions to merge. The companies intend to sign a memorandum of understanding to negotiate shared equity in a holding company that would house the combined automaker, according to Nikkei, potentially putting pressure on domestic rival Toyota (TM).  Meanwhile, Dow Jones Newswires reported that Foxconn, the Taiwanese company that makes Apple (AAPL) products, has also expressed interest in taking over Nissan.

4. Micron Technology Stock Higher Ahead of Earnings

Micron Technology (MU) stock is 1.5% higher in premarket trading ahead of its fiscal 2025 first-quarter earnings report after markets close today.  Analysts surveyed by Visible Alpha expect Micron to report revenue of $8.72 billion, 84% higher year-over-year, and for the company to swing to a profit of $1.84 billion or $1.58 per share. Micron’s report follows the announcement earlier this month that the chipmaker was awarded a federal grant of up to $6.165 billion to make semiconductors in the U.S. as part of the CHIPS and Science Act of 2022.

5. Nvidia Stock Gains After Four Consecutive Losing Sessions

After falling for four consecutive sessions to slip into a technical correction, shares of chipmaker Nvidia (NVDA) are about 3% higher in premarket trading. Investors are hoping Nvidia can sell significant volumes of its new Blackwell artificial intelligence (AI) chips after the reported discovery of overheating issues last month prompted concerns over production delays. Despite their recent struggles, Nvidia shares still are up more than 160% since the start of the year on booming demand for AI products.

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