Wall St rises as yields slip ahead of Fed rate verdict By Reuters

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<span>© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/File Photo</span><br />
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<p>By Ankika Biswas and Shristi Achar A</p>
<p>(Reuters) – U.S. stocks gained on Wednesday as Treasury yields retreated ahead of a likely pause in the Federal Reserve’s policy tightening campaign, though concerns over rates staying higher for longer kept investor sentiment in check.</p>
<p>The U.S. central bank is expected to maintain its key rate in the range of 5.25%-5.50% as it concludes its meeting at 2 p.m. ET, with investors focused on Fed economic projections and Chair Jerome Powell’s comments for clues on the outlook for rates and inflation. </p>
<p>Recent economic data has signaled an easing in core inflation, fuelling bets interest rates could have peaked, but a surge in oil prices has clouded the outlook for headline inflation, providing the Fed room to keep rates higher for longer.</p>
<p>Oil prices, however, fell on Wednesday amid a lack of clarity on energy demand, while Treasury yields retreated from their 2007 highs hit in the previous session.</p>
<p>Uncertainty around the rates trajectory and concerns over the state of the U.S. economy had sparked a selloff on Tuesday. </p>
<p>“Keeping rates higher for longer, above 5%, well into 2024 hasn’t always been the expectation and that puts some pressure on equities. The expectation today is of a hawkish pause,” said Keith Buchanan, portfolio manager at GLOBALT Investments. </p>
<p>Financial markets have priced in a 99% chance the Fed will pause rates on Wednesday and a near 71% likelihood the central bank will keep them unchanged in November, according to CME’s FedWatch tool.</p>
<p>Investors also looked forward to marketing automation company Klaviyo’s debut on the New York Stock Exchange, in a third big test for the market for new issues following smooth listings of <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Arm </span></span> Holdings (NASDAQ:) and Instacart.</p>
<p>The Boston-based company had secured a valuation of $9.2 billion in its initial public offering after pricing the shares above their indicated range.</p>
<p>Instacart lost 5.0%, and was on course to join other new entrants in failing to hold on to their strong gains on debut. Arm Holdings was down 0.9%.</p>
<p>All major sectors rose, with real estate and industrials leading gains, up 0.8% and 0.7%, respectively. </p>
<p>At 9:38 a.m. ET, the was up 105.32 points, or 0.31%, at 34,623.05, the S&amp;P 500 was up 12.22 points, or 0.27%, at 4,456.17, and the was up 25.78 points, or 0.19%, at 13,703.97.</p>
<p>Dollar General (NYSE:) fell 1.3% after J.P. Morgan downgraded the discount store operator to “underweight”.</p>
<p>Pinterest (NYSE:) added 6.4% as <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Citigroup </span></span> (NYSE:) upgraded the image-sharing platform to “buy” from “neutral” and as the firm announced a share buyback of up to $1 billion. </p>
<p>Coty (NYSE:) added 5.9% after the CoverGirl parent raised its annual like-for-like sales forecast. </p>
<p>Advancing issues outnumbered decliners by a 4.50-to-1 ratio on the NYSE and by a 2.09-to-1 ratio on the Nasdaq.</p>
<p>The S&amp;P index recorded five new 52-week highs and one new low, while the Nasdaq recorded 17 new highs and 49 new lows. </p>
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<br /><a href="https://www.investing.com/news/economy/futures-inch-up-on-hopes-of-pause-in-fed-rate-hikes-3178237">Source link </a></p><p>The post <a href="https://forextraderhub.com/wall-st-rises-as-yields-slip-ahead-of-fed-rate-verdict-by-reuters.html">Wall St rises as yields slip ahead of Fed rate verdict By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>