Federal Reserve Board Chair Jerome Powell holds a news conference after the Fed raised interest rates by a quarter of a percentage point following a two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy in Washington, March 22, 2023.
Leah Millis | Reuters
Here are the most important news items that investors need to start their trading day:
1. Is this it?
The Federal Reserve is expected to increase its benchmark interest rate Wednesday afternoon, as policy-making officials wrap up a two-day meeting. But as is usually the case on Fed decision days, the market will want to know more about what’s next. There are plenty of strong indications the Fed may pause hikes here, especially as the economy processes a banking crisis that has already brought down three large U.S. financial institutions. (See below.) Investors will also be eager to hear what Fed Chairman Jerome Powell and his crew say about the overall economic outcome and the recession that has yet to materialize despite numerous predictions from other experts. Follow live market updates.
2. Regional banks, national worries
A Pacific Western Bank branch in Los Angeles, California, US, on Friday, March 10, 2023.
Eric Thayer | Bloomberg | Getty Images
If you thought JPMorgan’s post-failure acquisition of First Republic might have nipped concerns about regional banks in the bud, you may want to reconsider. Shares of PacWest plunged nearly 28% Tuesday, meaning it has fallen more than 71% so far this year. Western Alliance shares declined 15%. The stocks didn’t look so hot in the premarket session Wednesday, either. The SPDR S&P Regional Banking ETF, meanwhile, fell more than 6% on Tuesday. The banking issues have weighed on investors’ minds this week as earnings season marches on and markets gear up for another Fed rate hike. The three major averages have fallen for two straight sessions.
3. Market to Ford: Tough
Ford Mustang Mach-E is presented at the New York International Auto Show, in Manhattan, New York City, April 5, 2023.
David Dee Delgado | Reuters
Ford easily beat expectations when it reported quarterly results after the bell Tuesday. It posted 63 cents per share in adjusted earnings, well ahead of Wall Street’s expectation of 41 cents. Automotive revenue came in at $39.09 billion, more than $3 billion above estimates. While the Ford EV unit’s losses widened as the company ramps up production, earnings from the company’s legacy internal combustion engine and fleet businesses more than made up for it. All in all, a good report, but Ford didn’t think it was enough to boost its guidance for the year. Investors, in turn, largely shrugged off the otherwise positive numbers from the Detroit stalwart. Shares of Ford were flat to slightly negative in extended trading.
4. China comes alive for Starbucks
Alex Tai/SOPA Images | LightRocket | Getty Images
5. PC pain for AMD
AMD Chair and CEO Lisa Su speaks at the AMD Keynote address during the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck | AFP | Getty Images
– CNBC’s Sarah Min, Jesse Pound, Michael Wayland, Amelia Lucas and Kif Leswing contributed to this report.
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