Investing.com – Wall Street traded higher on Monday as oil spiked more than 2% and investors prepared for policy decisions from both the Federal Reserve (Fed) and the Bank of Japan (BoJ) later in the week.
At 11:37AM ET (15:37GMT), the Dow Jones gained 108 points, or 0.60%, while the S&P 500 advanced 11 points, or 0.53%, and the tech-heavy Nasdaq Composite traded up 20 points, or 0.38%.
On a light economic calendar day, U.S. homebuilder sentiment unexpectedly rose in September, hitting an 11-month high.
With little data on the calendar, investors looked ahead Federal Reserve’s (Fed) policy decision on Wednesday.
The Fed is not expected to make a move on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT), but investors will first focus on the statement and updated forecasts for economic growth and interest rates that will be released simultaneously with the rate decision for an initial gauge on when the central bank contemplates returning to policy normalization.
Fed chair Janet Yellen will then hold what will be a closely-watched press conference 30 minutes after the release as investors look for any change in tone about the economy or future rate hikes.
Markets are currently pricing in just a 12% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 55%.
Ahead of the Fed decision on that same Wednesday, the Bank of Japan (BoJ) is set to release its own rate decision and monetary policy statement, followed by a press conference with governor Haruhiko Kuroda.
Unlike the lack of a move expected from the Fed, speculation on the BoJ decision points to a possible interest rate cut deeper into negative territory, tweaks to its asset-purchase program or new rules on the duration of securities it will purchase in the bond market.
Meanwhile, oil prices gained more than 2% on Monday on the back of news that Venezuelan President Nicolas Maduro said that OPEC and non-OPEC countries were "close" to reaching a deal to stabilize oil markets and that he aimed for an announcement this month.
Maduro’s comments on Sunday came despite the fact that OPEC secretary general Mohammed Barkindo said late Saturday that no decision would be made at the informal talks.
However, Barkindo did indicate that OPEC members may call an extraordinary meeting to discuss oil prices if they reach consensus at the informal gathering.
Bullish sentiment was also fueled by reports of fighting around Libyan oil ports.
Eastern Libyan forces said they had re-established control over two ports where an ousted faction launched a counterattack on Sunday, briefly seizing one terminal.
The renewed fighting was likely to negatively affect the troubled nation's oil exports.
U.S. crude oil futures gained 2.14 % to $44.55 by 11:39AM ET (15:39GMT), while Brent oil rose 2.16% to $46.76.
In M&A, Eldorado Resorts LLC (NASDAQ:ERI) offered to buy casino operator Isle of Capri Casinos Inc (NASDAQ:ISLE) in a deal valued at $1.7 billion, while Nucor (NYSE:NUE) agreed to acquire Independence Tube for $435 million.
Avnet Inc (NYSE:AVT) rose almost 9% on a deal to sell its IT business for $2.6 billion to Tech Data Corp.