Market Braces for Fed Rate Hike as Inflation Concerns Mount

The market is expected to open on a positive note, with U.S. equity futures pointing to a potential increase in stock prices.

The Federal Reserve is set to raise its benchmark interest rate by a quarter of a percentage point to 3.75%-4%, with a 91% probability of a hike, according to Fed-funds futures traders.

Persistent inflation remains the driving force behind calls for a rate increase, with prices growing above the Fed's 2% annual target for over five years.

Norfolk Southern expects higher fuel prices to create a significant headwind in the third quarter, while Dollarama raised its annual comparable sales growth forecast due to increasing inflationary pressures.