Stock prices almost rose during Wednesday’s trading, and all major averages turned upward after the end of the previous session. The day ahead of the announcement of the long-awaited monetary policy of the Federal Reserve Board of Governors this afternoon.
Currently, the main average is hovering near the highest level of the day. The Dow rose 346.46 points or 1 percent at 34,266.30, the Nasdaq rose 102.79 points or 0.7 percent at 14,849.18, and the S & P 500 rose 37.28 points or 0.9 percent at 4,391.47.
Wall Street’s strength comes from traders picking up stocks at declining levels following the slump seen in September.
Due to the rise on the day, the Dow has bounced off its lowest closing price in three months and the S & P 500 has rebounded from its two-month closing price.
Meanwhile, traders are also looking forward to the Fed’s monetary policy announcement scheduled for 2:00 pm Eastern Standard Time.
The Fed is widely expected to leave monetary policy unchanged, but it may provide guidance on plans to begin curtailing asset purchases.
The central bank had previously suggested that it could start tapering by the end of the year, but some disappointing economic data could put the Fed on hold.
On the economic front of the United States, the National Association of Real Estate Agents released a report in August showing a recession in existing home sales in the United States.
According to the NAR, existing home sales surged 2.2% in July, jumping to 6 million, and then fell 2.0% in August to an annual rate of 5.88 million.
Economists expected existing home sales to fall 1.7% from the originally reported 5.99 million last month to 5.89 million.
Energy stocks have risen sharply on the day, rising with crude oil prices. Crude oil delivered in November has jumped from $ 1.18 a barrel to $ 71.67.
Reflecting the strength of the energy sector, the NYSE Arca Oil Index is up 3.1%, the Philadelphia Oil Services Index is up 2.9% and the NYSE Arca Natural Gas Index is up 2.4%.
Airline stocks also show considerable strength, as reflected in the 2.8% surge by the NYSE Arca Airline Index.
Steel, financial and computer hardware stocks are also showing remarkable power, rising along with most other major sectors.
In overseas transactions, stocks market During the trading on Wednesday, various performances were seen throughout the Asia Pacific region. Japan’s Nikkei 225 Index fell 0.7% and China’s Shanghai Composite Index rose 0.4%.
Meanwhile, all major European markets moved upwards that day. Germany’s DAX index rose 0.9%, France’s CAC 40 index rose 1.2%, and the UK’s FTSE 100 index rose 1.5%.
In the bond market, government bonds are lacking in direction as traders await the Fed’s announcement. As a result, the yield on benchmark 10-year bonds, which move against prices, has fallen by less than a basis point at 1.318 percent.
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U.S. stocks rose sharply in response to recent weaknesses
Source link U.S. stocks rose sharply in response to recent weaknesses