PARIS (Reuters) – The New York Stock Exchange rose on Wall Street on Wednesday ahead of the Federal Reserve’s monetary policy decision deemed risk-free by the markets, expected later in the day.
In early trading, the Dow Jones index gained 80.57 points, or 0.23% to 34,598.30 points and the broader Standard & Poor’s 500 rose 0.25% to 4,455.04 points. The Nasdaq Composite takes 0.22% or 29.52 points, to 13,707.708.
The Fed will release its rate decision at 18:00 GMT, with the likelihood of a pause rated at 99% by money markets.
In addition to the rate decision, markets will scrutinize the central bank’s new economic forecasts, which will indicate whether the soft landing scenario favored by investors is considered credible by the Fed.
“The markets have written the scenario for today’s Fed meeting: a restrictive pause, an unchanged dot plot for 2023,” notes ING which believes “it sees no reason why the Fed would deviate from this scenario “.
Uncertainties nevertheless remain about the future trajectory of rates, which the press conference could help to resolve: the markets estimate that a further increase of 25 basis points will take place before the peak in rates is reached.
On the value side, Boeing gained 0.59% after revising upwards its annual forecasts over 20 years concerning aircraft deliveries to China.
(Written by Corentin Chappron, edited by Blandine Hénault)
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