By Liz Moyer
Investing.com - Technology stocks drove the Nasdaq Composite briefly above 10,000 on Tuesday, but the Dow Jones Industrial Average broke its six-day advance ahead of the Federal Reserve's interest rate announcement.
The Nasdaq settled below the psychologically significant 10,000 level, but still at another record high as giant stocks like Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) surged. Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX) and Google parent Alphabet (NASDAQ:GOOGL) also rose.
Investors paused after a multiday rally to await the Fed's statement, which is scheduled to be released on Wednesday. A number of economic data points also come out, including information on consumer prices and oil inventories.
Here are three things that could affect markets tomorrow.
1. Investors Await the Fed's Statement
The Federal Open Market Committee's two-day meeting ends Wednesday and investors expect the central bank to continue its support for the economy as it begins to emerge from the Covid-19 shutdowns.
Interest rates are expected to remain unchanged, but the Fed's statement could outline what it sees as risks to economic growth.
The Fed, along with the Treasury and Congress, have pumped trillions in stimulus to support businesses that were forced to shut down because of Covid-19.
2. Consumer Price Data Also Set for Release
The consumer price index data for May will be released at 8:30 AM ET (12:30 GMT). The forecast is for CPI to grow 0.2% in May compared to the same month last year, but to decline 0.1% since April amid Covid shutdowns. Total consumer prices fell 0.8% in April, the sharpest drop since the end of 2008 after energy prices plummeted.
Core CPI, which excludes energy and food prices, is expected to increase 1.3% since last May but drop 0.1% since April.
3. Weekly Oil Inventories Could Propel Oil Price
Weekly data on crude oil inventories are also due out Wednesday at 10:30 AM ET (14:30 GMT). The expectation is for a decline of 1.74 million barrels for the week ending June 5 compared to a decline of just over 2 million barrels the previous week.
Gasoline inventories are also expected to fall 71,000 barrels compared to a gain of 2.8 million barrels. Oil prices have surged over the last few weeks as business activity resumes, after plummeting earlier this spring on a drop of demand related to Covid shutdowns.