Dow approaches nearly 200 points higher; stocks crack a two-day losing streak to create an amazing Fed week

September 21, 2022: -On Monday, Stocks closed higher in an explosive trading session ahead of the Federal Reserve’s two-day policy meeting slated to kick off Tuesday.

It increased 197.26 points to close at 31,019.68. The S&P 500 gained 0.69% to 3,899.89, and the Nasdaq Composite which adds 0.76% to end at 11,535.02.

Stock delayed gains and losses throughout the session, with the 30-stock index down nearly 263 points. At session lows, the S&P 500 and Nasdaq shed over 9.9% each.

Yields pushed higher forward of the Fed’s likely decision to increase its benchmark rate by another 75 basis points to snuff out inflation later this week. The 10-year Treasury yield ended at 3.51% and hit its highest grade in 11 years.

After some brief hope over the summer that the Fed may be done with its aggressive tightening campaign, investors have been abandoning stocks again, fearing the central bank will go too distant and tip the economy into a recession.

Investors are aiming at the Fed’s approach meeting slated to start Tuesday, where the central bank is expected to increase interest rates by another 75 basis facts. Investors watch for corporate earnings guidance before the following reporting season begins in October.

“We’re in a wait-and-see policy, and calls are waiting for some kind of bullish or bearish trigger to send us out of this trading range,” said Adam Sarhan, CEO of 50 Park Investments. “The markets are struggling for direction, and that’s the fundamental news.”

Nine of the 11 S&P 500 sectors ended the day positively, leading to the upside in materials, customer discretionary, and industrials. Financials also rose as some investors bet higher speeds could benefit their bottom lines. Health care lived the laggard, which falls after comments from President Joe Biden indicated the pandemic was over.

Stocks glid in the previous week as investors responded to a hotter-than-expected inflation report and a bleak warning from FedEx about a “significantly worsened” global economy. The major averages posted their fourth weekly loss in five weeks.

This week, a few financial data freedoms are on terrace beyond the critical Fed meeting, with August accommodation starts and initial jobless claims on Thursday.

Editor's Choice

EX Platforms in Business

For decades, if not centuries, every successful business has understood that its most valuable asset is its employees. Because of the seismic …

Read More »
Posts You Might Like
The-corporate-magazine-15

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​