Breaking News
Investing Pro 0
Free Webinar - What Is a Gold IRA? Fees, Advantages, and Risks - December 7, 2022 | 01:00PM EST Enroll Now

Wall Street ends choppy session higher with focus firmly on Fed

Stock Markets Sep 19, 2022 06:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A trader stands beneath a screen on the trading floor displaying the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., September 13, 2022. REUTERS/Andrew Kelly 2/2
 
US500
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FDX
+0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GS
-0.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-1.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-3.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By David French

(Reuters) - Wall Street's main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week's policy meeting at the Federal Reserve and how aggressively it will hike interest rates.

Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment.

The S&P 500 and the Nasdaq rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.

Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.46%.

"This is all about what's going to happen on Wednesday, and what comes out of the Fed's hands on Wednesday, so I think people are just going to wait and see until then," said Josh Markman, partner at Bel Air Investment Advisors.

"We had a poor print when the CPI came in, so the Fed - who is behind the 8-ball - is now trying to get ahead of the curve and curb inflation, and that (awareness) is driving equity markets."

Reflecting the caution for new bets ahead of the Fed meeting, just 9.58 million shares traded on U.S. exchanges on Monday, the sixth lightest day for trading volume this year.

Focus will also be on new economic projections, due to be published alongside the Fed's policy statement at 2 p.m. ET (1800 GMT) on Wednesday.

Worries of Fed tightening have dragged the S&P 500 down 18.2% this year, with a recent dire earnings report from delivery firm FedEx Corp (NYSE:FDX), an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.

Goldman Sachs (NYSE:GS) cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.

"The Fed will continue to plough along, we'll get 75 (bps) on Wednesday, but what comes next and whether they are going to pause or not after Wednesday, that is going to be the interesting part," said Bel Air's Markman.

The Dow Jones Industrial Average rose 197.26 points, or 0.64%, to 31,019.68, the S&P 500 gained 26.56 points, or 0.69%, to 3,899.89 and the Nasdaq Composite added 86.62 points, or 0.76%, to 11,535.02.

A majority of the 11 S&P 500 sectors rose. One exception was healthcare, down 0.6% as it was weighed by a fall in shares of vaccine maker Moderna (NASDAQ:MRNA) Inc a day after President Joe Biden said in a CBS interview that "the pandemic is over".

Industrial stocks rebounded 1.4% after a sharp drop on Friday, while banks gained 1.9%. Tech heavyweights Apple Inc (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) Inc rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq.

Take-Two (NASDAQ:TTWO) Interactive Software Inc closed up 0.7%, having recovered from a slump earlier in the day caused by confirmation that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.

Meanwhile, Knowbe4 Inc jumped 28.2% to $22.17, its highest close since May 4, after the cybersecurity firm said that Vista Equity Partners had offered to take it private for $24 per share, valuing the company at $4.22 billion.

The S&P 500 posted one new 52-week high and 28 new lows; the Nasdaq Composite recorded 29 new highs and 378 new lows.

Wall Street ends choppy session higher with focus firmly on Fed
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (23)
Chad Richer Than You
Chad Richer Than You Sep 20, 2022 6:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If it don't rally this week, forget about the right shoulder on $NDX
Kevin Parker
Kevin Parker Sep 19, 2022 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With so many rate hikes in the cards and GIC's and short duration bonds yielding so much, it's hard to get behind stocks right now, especially those with increasing costs that can't just pass costs on directly to the consumer. In a few months things will change, but that's not before a big implosion.
TheEnd IsNigh
TheEnd IsNigh Sep 19, 2022 1:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I want to see JPow bump the interest rates by 600 bps. Crash the economy, drain all this stupid QE garbage that's been inflating goods and services since 2008, and reset things back to what they should have been before politicians played the "too big to fail" game. You know...the one where DC gets to pick the winners and losers in society? All of this nonsense needs to stop now and pain must be felt to correct all of our sins.
Mitchel Pioneer
Mitchel Pioneer Sep 19, 2022 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fraud continues.  Another round of loss intervention, another floor under the losses, and another JOKE of a day in the greatest financial fraud on earth.
Dave Jones
Dave Jones Sep 19, 2022 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes!!!!!!🤮🤮🤮🤮🤮
Tom Michaels
Tom Michaels Sep 19, 2022 12:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excuse da jour, enough of this bull.
Tom Lee
Tom Lee Sep 19, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell has been terrible at his job
First Last
First Last Sep 19, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So was the deplorable who made him chair.
Val Rawfoodsky
Val Rawfoodsky Sep 19, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FYI Obama made him chair in the first place.
Joseph Lee
Joseph Lee Sep 19, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Long PM’s!!
John Fornell
John Fornell Sep 19, 2022 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how about powell does the right thing and leaves the interest rate alone!
filipe moreira
filipe moreira Sep 19, 2022 12:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
Mario Rossi
Mario Rossi Sep 19, 2022 11:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rate hike should be at least as inflation. A lot of hikes are still on the way!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email