US stocks are set to open flat to a little higher today as Wall Street looks to the Federal Reserve to throw the market a lifeline in the form of a deep interest-rate cut.
The Federal Reserve meets tomorrow, and a narrow majority of Wall Street's top bond dealers predict the central bank will cut key rates by half a percentage point, or 50 basis points, even though markets are praying for a bigger move.
Nearly three-quarters of Americans think a recession is on the way, a significantly higher percentage than three months ago, according to a Newsweekmagazine poll issued on Saturday. Fully 71 per cent of adults consider a recession either very likely or somewhat likely within the next year, compared with 54 per cent who thought so in December, the poll found.
Energy stocks will be in focus after a weekend decision by OPEC to cut group production by one million barrels per day to boost oil prices.
Rising energy costs has been cited as a factor by many companies behind deteriorating financial results. The oil cartel's decision comes amid a US economic slowdown that threatens a decade-long record expansion.