U.S. stocks rose on Wednesday as traders monitor the latest developments in the Middle East and brace for the Federal Reserve’s latest rate policy decision.
Stocks are coming off a downbeat session Tuesday as the Israel-Iran conflict mounted.
Fed decision ahead The Federal Reserve’s rate decision is due at 2 p.m.
The U.S. central bank is widely expected to hold rates steady, but investors will be keeping a close eye on Fed Chair Jerome Powell’s post-meeting comments.
Traders are also watching for policymakers’ forecast on rate policy, as the Federal Open Market Committee will be sharing members’ “dot plot” of rate expectations.
U. S. Stocks increased on Wednesday as investors awaited the Federal Reserve’s most recent rate policy decision and kept an eye on the most recent events in the Middle East.
By one hundred points, or 0.2 percent, the Dow Jones Industrial Average increased. Together with the Nasdaq Composite, the SandP 500 also saw a 0.2 percent increase.
The Israel-Iran conflict escalated Tuesday, and stocks are recovering from a negative session.
According to Iran’s supreme leader, Ayatollah Ali Khamenei, the attacks between the two nations entered their sixth day on Wednesday. He warned that the U.S. S. should enter the conflict, it will “undoubtedly be met with irreparable damage.”.
Trump is considering his options regarding Iran, including the possibility of launching a military strike, according to current and former administration officials who spoke to NBC News on Tuesday after he threatened the Iranian leader on his Truth Social platform, stating that “our patience is wearing thin” and demanding “UNCONDITIONAL SURRENDER!”.
The founder of Vital Knowledge, Adam Crisafulli, stated that the equity markets appear particularly vulnerable at the moment.
“Even before the events in the Middle East, there was just so much risk on the horizon, and we have valuations that are very elevated so you don’t have a lot of flexibility,” he stated on Tuesday’s “Closing Bell” on CNBC, adding that the debt ceiling, tariffs, and fiscal uncertainty are some of the variables that are up in the air. Not much capacity is budgeted to handle all of this uncertainty. “.
Fed decision to come.
The Federal Reserve will make its rate decision at 2:00 PM. M. ET. . The U. S. Although it is generally anticipated that the central bank will keep interest rates unchanged, investors will be closely monitoring Fed Chair Jerome Powell’s remarks following the meeting.
As the Federal Open Market Committee shares its members’ “dot plot” of rate expectations, traders are also keeping an eye on rate policy forecasts from policymakers.
