September 29, 2022

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Wall Street Stocks Rise, Oil Falls Ahead of Fed Meeting

Wall Street Stocks Rise, Oil Falls Ahead of Fed Meeting

  • Fed meeting in focus, interest rate hike expected
  • Wall Street’s main indexes advanced
  • Brent crude futures are stable at less than $100 a barrel
  • Benchmark 10-year yields move toward two-year highs
  • Dollar Index Falls

NEW YORK (Reuters) – Wall Street’s three major stock indexes rebounded on Tuesday, a day ahead of an expected interest rate hike by the US Federal Reserve, while oil prices fell 7% on hopes of ending the conflict in Ukraine. .

Investors expect the US central bank to raise interest rates for the first time in three years by at least 25 basis points amid rising rates. Traders will also be watching closely the Federal Reserve for details on how it plans to end its bond-buying program.

Ahead of the Federal Reserve’s meeting on Wednesday, benchmark 10-year bond yields slipped from their highest levels in more than two years and were last at 2.1544%, having earlier surged to 2.169%, the highest since June 2019.

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“I think the big event this week will be for the Fed to discuss what they’re going to do with the portfolio and how quickly they can move. The short-term outlook of course will be an increase of a quarter percent,” said Tom Plumb, portfolio manager at Plumb Balanced Fund in Wisconsin.

On Wall Street, the benchmark S&P 500 Index, which had fallen about 2.4% in the previous three sessions, was up, led by the technology, consumer appreciation and healthcare sectors. Read more

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Dow Jones Industrial Average (.DJI) The S&P 500 rose 1.82% to 3,3544.34 (.SPX) It rose 2.14% to 4262.45 and the Nasdaq Composite Index (nineteenth) It added 2.92% to 12,948.62.

“What you’re seeing are relief spikes in a bear market,” Plumb added. “There are hopes and expectations that something will start to improve in Ukraine.”

European shares, which have been recovering in recent sessions, fell after China reported a jump in coronavirus cases and new restrictions. The ongoing war in Ukraine also weighed on European equities although ceasefire talks continued and some positive signs of a breakthrough. Read more

Pan-European STOXX 600 Index (.stoxx) Lost 0.28% and MSCI’s gauge of stocks worldwide (.MIWD00000PUS) Gain 0.94%. MSCI’s broadest index of Asia Pacific shares outside Japan (MIAPJ0000PUS.) It had closed down 2.73% overnight.

Oil prices fell more than 6% to their lowest in nearly three weeks on Tuesday, as supply disruption fears eased over peace hopes in Ukraine, and rising COVID-19 cases in China raised demand concerns. Read more

Brent crude futures fell 6.5% to settle at $99.91 a barrel, while US West Texas Intermediate (WTI) crude fell 6.4% to settle at $96.44 a barrel. Both contracts settled below $100 a barrel for the first time since late February.

The US dollar lost its value against the Euro and other major currencies after the drop in oil prices and before the expected interest rate hike from the Federal Reserve. The dollar index slipped 0.043%, with the euro advancing 0.04% to $1.0943. Read more

Safe-haven gold fell nearly 1% to its lowest level in two weeks. Spot gold fell 1.8% to $1,915.48 an ounce, while US gold futures fell 1.55% to $1,929.30 an ounce.

(Shibuike Ujh Report) From New York. Editing by Nick McPhee and Cynthia Osterman

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