On Wednesday morning, stocks rose ahead of the Federal Reserve’s newest interest rate decision as the recent spike in oil prices subsided and Treasury yields dropped from multi-year highs.
By 63 points, or 0.2%, the Dow Jones Industrial Average increased. The Nasdaq Composite and S&P 500 each saw 0.2% gains.
After reaching $92 on Tuesday, crude oil prices slightly dropped, raising worries that increased energy costs will revive inflationary forces and stall the global economy.
After reaching its highest yield since 2007 the day before, 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.
In July, the Federal Reserve increased its benchmark rate to the highest level in more than 22 years. The Fed raising rates has a 29% chance of happening, according to Fed futures prices.
Source (CNBC)
