Wall Street surges over peace talks in Ukraine, Fed on tap

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Wall Street surges over peace talks in Ukraine, Fed on tap

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  • The big banks rise in anticipation of a rise in interest rates
  • Fed policy statement expected at 2:00 PM ET
  • Chinese ADRs rise following Beijing’s move to support markets
  • Indices: Dow 1.07%, S&P 1.38%, Nasdaq 2.05%

March 16 (Reuters) – Major Wall Street indices rose Wednesday, led by gains in tech and financials, as signs of progress in Ukraine-Russia peace talks lifted sentiment ahead of a widely expected rise in stocks. interest rates from the Federal Reserve.

Ten of the 11 major S&P sectors rose at the start of trading, with financials (.SPSY) up 2.1%. Morgan Stanley (MS.N) was up 3.5%, as big banks gained in anticipation of the first rate hike since 2018.

Megacap names Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) added 1.3% each, providing the biggest boost to the S&P 500 and Nasdaq.

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Ukraine’s President Volodymyr Zelenskiy said the negotiations were becoming “more realistic”, while Russian Foreign Minister Sergei Lavrov said there was “some hope of compromise”. to know more

The global mood was also lifted by China’s promise to launch more stimulus to the economy and keep markets stable, fueling a rally in US-listed Chinese equities. to know more

The Fed hiked interest rates by at least 25 basis points at the end of its two-day meeting later in the day, in what would be the first of a series of rate hikes this year as it intensifies its fight against levels stubbornly. high inflation.

The policy statement is scheduled for 2pm ET (1800 GMT) and will be followed by a press conference from Fed President Jerome Powell. Traders will be watching closely the updated quarterly interest rate and economic projections for clues as to how fast rates will rise. to know more

“Everyone is expecting a 25-point rate hike later today, but it will likely be accompanied by more cautious but not overly aggressive comment,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

“People are mainly looking for projections on rate hikes in the future and we expect the Fed will not back down on the number of hikes they are planning this year, but they may take a slower approach to do so.”

At 9:54 AM ET, the Dow Jones Industrial Average (.DJI) was up 359.28 points, or 1.07%, to 33,903.62, the S&P 500 (.SPX) was up 58.71 points, or 1.38%, to 4,321.16, and the Nasdaq Il Composite (.IXIC) was up 265.62 points, or 2.05%, to 13,214.24.

The CBOE Volatility Index (.VIX), also known as the Wall Street fear indicator, fell to 28.26 points, the lowest level since February 2017. 25.

Data released earlier showed U.S. retail sales rose moderately in February as more expensive gasoline and food forced households to cut spending on other goods, which could hold back economic growth this quarter. to know more

US-listed shares of Baidu, Alibaba Group, JD.com, Tencent Music (TME.N), Pinduoduo Inc (PDD.O) Didi Global (DIDI.N) rose between 17.8% and 42, 8% while the Chinese securities regulator said they are committed to reaching an agreement on China-US cooperation for the supervision of audits.

Kohl’s Corp (KSS.N) gained nearly 6% after Axios reported Canadian retail firm Hudson’s Bay is considering an offer for the US department store operator. to know more

Rising emissions outnumbered decreases by a ratio of 5.58 to 1 on the NYSE and 5.16 to 1 on the Nasdaq.

The S&P Index made 14 new highs in 52 weeks and no new lows, while the Nasdaq made 16 new highs and 34 new lows.

(This story corrects the company name in Dakota Wealth from SlateStone Wealth in paragraph 6)

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Referrals by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: Thomson Reuters Trust Principles.

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