HomeFinancial MarketsStocks Rise as Federal Reserve Decision Looms

Stocks Rise as Federal Reserve Decision Looms

U.S. stocks edged higher on Wednesday as investors gear up to hear the Federal Reserve’s latest interest rate decision in what will be its final policy meeting of the year. The central bank is expected to pass its seventh interest rate increase of 2022.

The S&P 500 and the Dow Jones Industrial Average both edged upward by about 0.7% each while the Nasdaq Composite advanced by 0.6%. In contrast, the U.S. dollar retreated. West Texas Crude Oil (WTI) futures rose 0.3% to $77 per barrel after OPEC+ and the International Energy Agency projected a demand rebound in 2023.

Analysts expected the Federal Reserve to raise its federal fund’s rate to a new range of 4.25% to 4.5%; the highest rate since December 2007. The decision is expected to be partially driven by the annual 7.1% rise in the U.S. Consumer Price Index in November.

“The Fed is still going to focus on the labor market imbalance, a dovish pivot is still a long way off, and in the meantime, companies and consumers have to recalibrate to the impact of higher interest rates and a slowing economy,” BMO Wealth Management’s Chief Investment Strategist Yung-Yu Ma commented in an emailed note.

New York Community Bank Acquires Most of Signature Bank

New York Community Bank (NYCB) has made a deal with Federal Deposit Insurance Corporation (FDIC) to acquire most of the recently-collapsed Signature Bank. According...

Oil Extends Losses Amid Banking Sector Uncertainty

Oil losses were sustained on Monday as investors continue to harbor concerns over the ongoing global banking crisis. This uncertainty has hampered investors' willingness...

Kevin O’Leary Says He’s Expecting Another Crypto Fallout But Isn’t Out On Bitcoin

Businessman and Shark Tank star Kevin O’Leary expects the crypto market to have another fallout in the future. However, that doesn’t mean he’ll stop...