On Monday, the S&P 500 showed minimal change as traders anticipated the Federal Reserve’s upcoming policy decision.
Both the broad index and Nasdaq Composite experienced little declines of about 0.1% and 0.2%, respectively. By 38 points, or 0.1%, the Dow Jones Industrial Average increased.
Both the S&P 500 and the Nasdaq had losses at the close of the previous trading week, making it two weeks in a row. The Dow was able to complete the week with a 0.1% gain.
On Monday, the price of West Texas Intermediate and Brent crude reached its highest level since November. WTI is on course to experience its largest price increase since the first quarter of 2022, up roughly 30% so far in the third quarter.
At its policy meeting this week, the Fed is widely expected to keep interest rates unchanged by investors. From here, traders will attempt to gain a clearer understanding of the central bank’s position on inflation.
Whether the Fed presents the pause with a dovish or hawkish slant is what matters most for financial markets, according to Quincy Krosby, chief global strategist for LPL Financial. “How the Fed communicates the pause is key for November and December rate expectations,” he added.