The U.S. stock market is surging on anticipation before the Fed's interest rate announcement.
STOCK MARKET NEWS
DATE:-20-09-2023
As investors wait for the outcome of the Federal Reserve's policy meeting, stock prices in the United States have risen.The Dow Jones Industrial Average gained 89 points, or 0.3%, at 9:39 AM ET (13:39 GMT), while the S&P 500 gained 0.3% and the NASDAQ Composite gained 0.2%.
With the Fed's rate decision pending,
Interest rates in the United States have been increased from near zero in about a year and a half in an effort to control inflation, and it is largely predicted that the Federal Reserve will maintain them stable in the range of 5.25% to 5.50% when its two-day meeting closes later on Wednesday.
Many investors anticipate no further rate hikes from the Fed this year, but others hold out hope for an increase in either November or December.
The headline inflation figure saw its strongest increase rate in 14 months due to rising oil costs, despite last week's statistics indicating a drop in core inflation.
The latest forecasts for the economy, including year-end expectations for inflation, unemployment, and gross domestic product, will be released with the rate announcement, and Chair Jerome Powell's press conference following the rate announcement will be closely watched for any fresh signals concerning future policy.
BoA raises its S&P 500 prediction for the year.
Bank of America Global Research increased its S&P 500 year-end forecast from 4,300 to 4,600 on Wednesday, citing the possibility that "old economy" stocks on the index could benefit as much as, if not more than, their modern technology counterparts.
Gains in AI-related growth firms like Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META) have helped push the S&P 500 up by more than 15% this year.
With its IPO complete, Klaviyo is ready to launch.
In other business news, marketing automation firm Klaviyo has priced its initial public offering beyond its specified range and is now ready to begin trading on the New York Stock Exchange.
Instacart (NASDAQ:CART) finished up 12% on its first day of trading on the Nasdaq, and Arm Holdings (NASDAQ:ARM) has also been positively greeted.
In other news, logistics giant FedEx Corporation (NYSE:FDX) will be holding its quarterly earnings conference call after the market closes today. General Mills (NYSE:GIS) reported a sales and profit increase and a maintenance of its previous financial outlook. Shares fell by 0.8%.
Oil prices have fallen from 10-month highs.
On the day before the Federal Reserve's interest rate decision, oil prices dropped, retreating from 10-month highs as markets processed a forecast of a substantial decrease in U.S. crude stocks.
On Tuesday, the American Petroleum Institute said that, compared to the previous week, crude oil stocks in the United States had decreased by more than five million barrels. Later on Wednesday, official numbers should be available.
Fears of a significant supply shortage this year had pushed prices rising to the highest levels since November of last year, but despite this sizable draw, speculators are taking some profit ahead of the critical Fed decision.
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