US stocks rise ahead of Fed's rate decision as oil prices and bond yields ease
- US stocks rose Wednesday as investors await the Federal Reserve's interest rate decision.
- Wall Street largely expects the Fed to hold rates steady, with the focus on the prospect of a future hike.
US stocks rose Wednesday as investors await the Federal Reserve's latest interest rate decision in the afternoon.
While Wall Street widely expect the central bank to hold rates steady at its 2 p.m. announcement, some investors are betting on a potential hike before the year's end.
Fed Chairman Jerome Powell has previously indicated that rates may have to remain higher for longer. In recent weeks, concern has grown that rising oil prices would upend the Fed's fight against inflation, with US crude oil topping $92 a barrel this week. But on Wednesday, oil slid modestly.
Meanwhile, 10-year Treasury yields also declined, after hitting their highest level since 2007 on Tuesday. Commentators have warned that high bond yields could worsen borrowing costs for the government, putting upward pressure on interest rates.
Here's where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
- S&P 500: 4,454.07, up 0.23%
- Dow Jones Industrial Average: 34,612.47, up 0.27% (94.74 points)
- Nasdaq Composite: 13,693.53, up 0.11%
Here's what else happened today:
- AI innovations could turn side hustles into a $1.4 trillion industry this decade, Morgan Stanley said.
- Oil is looking to hit $100 a barrel, slipping up the Fed in its inflationary fight.
- Russia's trade with the US has dropped to a three-decade low, while trade with China climbs to an all-time high.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 2.34% to $89.5 a barrel. Brent crude, the international benchmark, slid 1.25% to $93.41 a barrel.
- Gold declined 1.02% to $1,942.80 per ounce.
- The yield on the 10-year Treasury bond dropped 3.4 basis points to 4.333%.
- Bitcoin essentially stayed flat at $27,103.