Wall Street Awaits Fed Policy Decision: Latest Updates

Markets Steady as Investors Anticipate Fed Policy

Wall Street saw little change in early trading on Wednesday. Investors are eagerly awaiting the US Federal Reserve’s policy decision. The S&P 500 stayed flat, the Dow Jones Industrial Average held steady, and the Nasdaq composite edged up slightly by 0.1%.

Today’s Market Status

• The Dow Jones Industrial Average rose by 0.2% to 42,277.37.
• The S&P 500 increased by 0.2% to 5,995.19.
• The Nasdaq Composite Index climbed by 0.3% to 19,570.03.

Investors expect the Fed to keep its benchmark interest rate unchanged. However, they are keen on updates about inflation, economic growth, and future interest rates.

Yesterday’s Market Performance

On Tuesday, stocks fell due to higher oil prices and weaker retail sales data:

• The S&P 500 dropped by 0.8%.
• The Dow lost 0.7%.
• The Nasdaq slipped by 0.9%.

Oil Prices Drop

Crude oil prices fell on Wednesday after sharp gains the previous day:

• US benchmark crude fell by 84 cents to $72.43 a barrel.
• Brent crude slipped by 86 cents to $75.59.

Oil prices had surged over 4% on Tuesday. Tensions between Israel and Iran raised fears of supply disruptions through the Strait of Hormuz. However, past conflicts have not always led to lasting supply issues.

Global Markets Show Mixed Results

Global markets showed varied results:

• Japan’s Nikkei 225 climbed by 0.9% despite a drop in exports to the US.
• Germany’s DAX rose by 0.1%.
• France’s CAC 40 gained by 0.2%.
• The UK’s FTSE 100 added 0.2%.
• Hong Kong’s Hang Seng dropped by 1.1%.
• Shanghai’s Composite edged up by 0.1%.
• South Korea’s Kospi gained by 0.7%.
• Australia’s ASX 200 slipped by 0.1%.

Policy Uncertainty and Its Impact

Traders are considering the effects of policy uncertainty, tariffs, and global demand concerns. Higher oil prices usually support renewable energy stocks. However, solar shares fell sharply on Tuesday. Reports suggest Congress may phase out clean energy tax credits:

• Enphase Energy dropped by 24%.
• First Solar slid by 17.9%.

Latest Company News

In company news, Verve Therapeutics soared by 81.5%. This followed Eli Lilly’s announcement of a $1 billion acquisition deal, which could grow to $1.3 billion with milestones. Eli Lilly shares declined by 2%.

Bond and Currency Market Updates

In bond markets, Treasury yields slipped after soft retail data suggested weaker household spending. The yield on the 10-year Treasury retreated, reflecting cautious investor sentiment ahead of the Fed announcement.

In currency markets:

• The US dollar weakened to 144.97 yen from 145.29 yen.
• The euro rose to $1.1506 from $1.1480.