In anticipation of the Federal Reserve meeting later this week, stocks ended the day Monday close to flat.
The S&P 500 rose 0.07% to 4,453.53, while the Nasdaq Composite gained 0.01% to close at 13,710.24. With a gain of 6.06 points, or 0.02%, the Dow Jones Industrial Average finished the day at 34,624.30.
The two-day Fed policy meeting gets underway on Tuesday. According to the CME Group’s FedWatch programme, which measures pricing in the fed funds futures market, traders are giving the central bank a 99% chance of keeping rates unchanged when it announces its rate decision on Wednesday. On Wednesday, the central bank will also present its predictions for the market.
Less is known about what the Fed will do in November, with the market anticipating a raise with a 31% chance. The experts at Goldman Sachs predicted a decrease in November over the weekend.
There are several unanswered questions, according to Stephanie Lang, CIO at Homrich Berg: “Everyone understands that they’re going to stay put for this conference, but then what is their messaging going to be going forward? We must wait and see what kind of future guidance the Fed provides at this time.