Russell 2000 ready to rise
The Russell 2000 (NYSE: IWM) futures are up and the small-cap index will likely rise as global equities rally following the Fed interest rate cut.
The U.S. Federal Reserve decided on Tuesday to lower the federal funds rate to 4.75% from 5.25%, a move that sent U.S. equities flying. Today the rally spread overseas, as the major Asian and European markets posted solid gains.
In economic news, consumer prices in the United States surprisingly fell 0.1% in August, the U.S. Labor Department announced. Economists were expecting prices to stay put following a 0.1% rise in July.
Core prices, which exclude the volatile costs food and energy, added 0.2%, as projected.
The numbers suggest that inflation remains in check.
Meanwhile, U.S. housing starts for August fell a more-than-expected 2.6% to a level of 1.33 million. That’s below the expected level of 1.36 million and the latest sign that the slump in the U.S. housing sector is far from over. Housing starts in July were a downwardly revised 1.37 million.
