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Dow Increases By Over 100 Points As Fed Decision Approaches

In advance of the Federal Reserve’s most recent interest rate decision, the Dow Jones Industrial Average increased on Wednesday morning.

Gaining 188 points, or 0.6%, was the blue-chip index. While the Nasdaq Composite fell by 0.3%, the S&P 500 increased by 0.2%.

After reaching its highest point since 2007 the previous day, the yield on the 10-year Treasury fell on Wednesday. Investors are betting that once inflation decreases and the Fed ends its permanent hike-campaign, market rates will begin to turn around.

At 2 p.m. ET, the Fed is largely anticipated to hold rates constant. Investors will, however, be closely monitoring the economic predictions summary and Fed chair Jerome Powell’s press conference for hints as to whether the central bank will boost rates one more time this year.

The SPDR S&P Bank ETF (KBE) increased by about 1%, while industrial firms Caterpillar and Deere increased by more than 1% and 2%, respectively, on expectations that the Fed will be able to successfully reduce inflation without sending the country into recession.

Source (CNBC)

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