- The S&P 500, Dow Jones and Nasdaq 100 all advanced strongly during the day.
- US Treasury yields rose ahead of the FOMC meeting.
- Investors’ attention shifted to the Federal Reserve’s monetary policy decision.
Wall Street it ended the day with gains, spurred on by optimism in financial markets, which sent gains in the S&P 500, the Dow Jones and the high-tech Nasdaq Composite. At the close of the New York session, the SP500 gained 1.3%, or 4,002.87 points, while the Dow Jones rose 0.98%, or 32,560.60 points. The Nasdaq Composite led the advances, with 1.58%, 11,860.11.
US stocks higher, helped by a boost in risk appetite
Investors ignored the problems in the banking system. On Tuesday, Treasury Secretary Janet Yellen said that if regulators sense a possible run on the banking system, the federal government could step in to safeguard depositors of more banks. In terms of data, Existing Home Sales in the United States (US) rose above the prior month’s figures as lower mortgage rates boosted sales. Existing Home Sales for February rose 14.5% MoM, beating consensus of 5%, ending a 12-month streak of declining sales.
Apart from this, US Treasury yields rose, with 2-year and 10-year yields gaining 18 and 12 basis points, respectively, ahead of tomorrow’s Federal Reserve decision. The 2-year US Treasury Bond yield is 4.179%, while the 10-year yield is 3.607%.
Traders’ attention shifted to the US Federal Reserve’s monetary policy decision, with investors expecting a 25 basis point rate hike from the Fed. However, tomorrow the focus will be on Fed Chairman Jerome Powell’s press conference, which will be scrutinized by investors, who expect Powell to offer some sort of forward-looking guidance.
By sectors, Energy, Consumer Discretionary and Finance led the increases, with 3.45%, 2.71% and 2.54% each. On the contrary, Public Services, Real Estate and Basic Goods ended with losses of 2.05%, 0.66% and 0.12% respectively.
In the foreign exchange market, the Dollar Index (DXY), which measures the value of the dollar against a basket of six currencies, lost 0.09% and stood at 103,214, after reaching a minimum of 103,000 so far this year .
What must be considered?
The US schedule will include the Federal Reserve’s Open Market Committee (FOMC) monetary policy meeting, along with Fed Chairman Jerome Powell’s press conference at around 18:00 and 18:30 GMT.
S&P 500 daily chart
|Last price today||4003.96|
|daily change today||51.18|
|today’s daily variation||1.29|
|today’s daily opening||3952.78|
|previous daily high||3954.98|
|previous daily low||3865.6|
|Previous Weekly High||3971.64|
|previous weekly low||3807.12|
|Previous Monthly High||4192.63|
|Previous monthly minimum||3940.95|
|Fibonacci daily 38.2||3920.84|
|Fibonacci 61.8% daily||3899.74|
|Daily Pivot Point S1||3893.93|
|Daily Pivot Point S2||3835.07|
|Daily Pivot Point S3||3804.55|
|Daily Pivot Point R1||3983.31|
|Daily Pivot Point R2||4013.83|
|Daily Pivot Point R3||4072.69|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.