FOMC Meeting Today: US Stocks Rise Amid Interest Rate Decision
As investors await the FOMC meeting today, they are also monitoring the impact of the Israel-Iran conflict on the global economy, with oil prices surging and the US dollar index slipping 0.1% to 98.73. The outcome of the Fed's decision is expected to have significant implications for the US stock market and the global economy.
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US stock indexes rose on Wednesday, with investors awaiting the Federal Reserve's monetary policy decision, as the Fed is expected to leave interest rates unchanged, but concerns about rising prices persist.
The S&P 500 index was 2.5% below its record level, and the Nasdaq was 3.3% lower, while the Dow Jones Industrial Average rose 0.18% to 42,289.73. Investors are also watching the Israel-Iran conflict, which has made them risk-averse, as the US considers joining Israel in strikes against Iranian nuclear sites. The S&P 500 posted four new 52-week highs and six new lows, while the Nasdaq recorded 31 new highs and 53 new lows.
In the Middle East, the conflict between Israel and Iran has been volatile since last Friday, with reports of President Donald Trump considering additional military support for Israel. The escalating conflict has led to a surge in oil prices, with futures up 1.5% at $75.75 per barrel, their highest level since January. Mega-cap tech stocks were mostly higher, with Tesla up 2% and Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Broadcom each adding less than 1%.
The Federal Reserve's decision on interest rates is expected to be announced at 2:00 p.m. ET, with investors watching for quarterly economic projections and Chair Jerome Powell's outlook on tariffs and inflation. The yield on the 10-year Treasury note was at 4.37%, down from 4.39% at Tuesday's close, while gold futures were up 0.1% at $3,410 an ounce.