- US stock markets open higher as oil reversal accelerates.
- Easing concerns about supply shortages and COVID-19 in China are weighing on energy markets.
- All eyes are on the outcome of the Federal Reserve meeting.
US stock markets opened on a mildly positive note on Tuesday, with oil prices retreating for the second day in a row and all eyes on the US Federal Reserve’s monetary policy meeting.
The S&P 500 Index is up 1.25%, while the Nasdaq Tech Index and Dow Jones Industrial Average are up 1.93% and 0.99%, respectively, at time of writing.
Oil prices tumble from highs on easing supply concerns
Concerns about oil supply shortages due to sanctions on Russia appear to fade in the face of hopes that Saudi Arabia and the United Arab Emirates are ready to ramp up production.
Beyond that, China’s fast-spreading COVID-19 outbreak, which has already forced lockdowns in some cities, is contributing to lower oil prices. WTI has fallen nearly 30% from last week’s highs of $126 a barrel to levels below $93 so far.
On the other hand, investors are awaiting the conclusion of the two-day monetary policy meeting, starting today. The Fed is widely expected to raise interest rates for the first time in three years in an effort to rein in inflation.
By sector, consumer discretionary stocks rose 2.7% and technology grew 1.96%, leading gains with only energy and materials in the red with respective declines of 4.62% and 0.08%.
Technical levels to follow
Source: Fx Street
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