Fed rate decision, size of rate cuts, Google in EU: 3 Things

US stock futures (ES=F, NQ=F, YM=F) and US Treasury yields (^TYX, ^TNX, ^FVX) are moving higher in Wednesday's pre-market trading as the Federal Reserve is anticipated to cut interest rates for the first time in four years coming out of its September policy meeting later today.

Investors are going back and forth on whether the central bank will ease rates by as little as 25 basis points or as much as 50 basis points. The CME FedWatch tool measures that 65% of investors are pricing in a 50-basis-point cut.

Alphabet's Google (GOOG, GOOGL) won an antitrust suit in EU courts, overturning a $1.7 billion fine originally levied against the tech giant for its dominance in the advertising space.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

Good morning, everyone.

The Federal Reserve is expected to announce its first rate cut in four years today.

The central bank's decision will be out at two pm Eastern time followed by comments from Fed Chair Jerome Powell at 230 Eastern time.

The FED has kept its benchmark lending rate at a 23 year high.

Since last July, we are seeing some movement in the markets ahead of this decision.

Take a look at us stock futures right now.

They are higher across the board.

Let's also take a look at treasury yields while we've got your attention on some of the free market movement here for the 5 to 10 in the 30 year.

See a slight basis point couple basis point move to the upside as of right now and we're coming into today close to all time highs on the market holding on to a seven day winning streak in equities.

That is the setup as Wall Street hopes for some clarity ahead of that expected rate cut and traders pricing in a 65% chance of a 50 basis point cut up significantly from 25% just a month ago.

All that according to the F watch and in the backdrop, you've got some big tech news.

Google scoring a legal victory today.

The second largest court in the European Union overturned a nearly $1.7 billion fine that was imposed on Google over apparent abuse of its dominance in the ad space.

The win comes after Google lost an antitrust case in the US last month that concerned monopolistic charges in its search business.