Having dispelled default and bank crisis fears, Wall Street is extending confident gains. Stock investors are anticipating a pause in the Fed’s monetary tightening as they collected enough evidence to foresee this policy move.

The stock market had a sluggish session yesterday, though the major indices closed with modest growth.
The Dow Jones logged a 0.03% uptick. The Nasdaq climbed by 0.36%. The S&P 500 rose by 0.24% or 10.06 points to close at 4,283.
The major stock indices maintained the optimistic sentiment of yesterday. The S&P 500 is expected to trade in the intraday corridor between 4,240 and 4,310.
Stock investors decided to take a breather after the S&P 500 surged by almost 20% from the lows of October 2022. The index owes its growth to the rally in high-tech stocks, their upbeat revenue, and hopes for a completion in the Fed’s cycle of rate hikes.
The recent economic data and dovish remarks from Fed’s policymakers increased the likelihood that the US central bank would put interest rates on hold at the policy meeting next week.
Fed fund futures show that traders have estimated an 80% chance that the central bank would keep interest rates in the 5%-5.25% range. However, there is a 50% chance of a 25 basis point hike in July. The market will get a clearer picture after the release of inflation data.
Fin-tech shares rose by 1.33%, leading gains among the 11 major sectors of the S&P 500, while the regional banking index jumped by 5.41%. In terms of individual stocks, Coinbase Global's move was the most considerable. The company's shares tumbled by 12.09% after the US Securities and Exchange Commission sued the crypto exchange, accusing it of illegal activities without prior registration with the regulator.
Apple widened losses and fell by 0.21%, a day after the iPhone maker introduced the high-priced Vision Pro augmented reality headset.
Advanced Micro Devices rose by 5.34% after Piper Sandler raised its share price target to 150 dollars.
On Wednesday, futures for US stock indices continued to trade moderately as investors remain cautious ahead of inflation data and the Federal Reserve meeting next week.
At the same time, the volatility of the US stock market returned to pre-pandemic lows. The VIX fear index closed below 14 on Tuesday for the first time since February 2020. The score is more than 5 points below the 33-year average.
A widely anticipated pause in the Federal Reserve's aggressive rate hike campaign next week is clearly uplifting sentiment. FedFunds futures now show only a one in five chance of another tightening on June 14th.

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