US Stocks Rise Ahead of FOMC Meeting Today Time
Investors are closely watching the Fed's policy decision for clues on future interest rate cuts and economic growth, as the central bank seeks to provide clarity on its outlook for the economy amidst rising trade tensions and global economic concerns.
US stocks recovered some ground on Wednesday, with the Dow Jones Industrial Average up about 0.8%, the S&P 500 rising about 0.9%, and the Nasdaq Composite leading the gains with a rise of more than 1.2%, as investors await the Federal Reserve's policy decision expected to hold interest rates steady.
The Fed's decision is slated for release at 2 p.m. ET, followed by Chair Jerome Powell's press conference, where investors will be closely watching for clues on future interest rate cuts and economic growth. Despite a recent sharp sell-off, stocks are attempting to recover, with investors seeking reassurance that growth remains healthy and inflation's trajectory still points to 2%.
Several stocks made significant moves, including Boeing, which jumped 6% after its CFO provided an upbeat outlook, and Nvidia, which rose 1% after announcing new AI chips. However, Williams-Sonoma fell 11% after issuing tepid guidance and disclosing an accounting error. The market has been affected by rising tensions between the US and major trade partners, leading to a sell-off in the stock market.
The Fed's decision will also include the release of its quarterly projections on GDP, unemployment, and inflation. Bank of America CEO Brian Moynihan said the economy is "in a recession," and investors are looking for clarity on policy from the Fed. The central bank is searching for certainty around economic variables like international trade that have rattled investors.
As the market awaits the Fed's decision, crypto prices, including Bitcoin, rose ahead of the announcement but may stay rangebound in the near term, due to global economic concerns that have intensified in recent weeks on trade tensions.