Stocks rose on Wednesday as investors braced themselves for the Federal Reserve’s latest decision on monetary policy.
The Dow Jones Industrials climbed 115.07 points to 28,110.67.
The S&P 500 took on 12.85 points to 3,414.05.
The NASDAQ progressed 35.96 points, or 1.2%, to 11,226.29.
Better-than-expected earnings from FedEx boosted sentiment. FedEx released a blowout quarter with earnings $2.18 per share above analyst estimates, fueled by the e-commerce boom. The shipping company rallied more than 7%.
The Federal Open Market Committee will provide its quarterly update on its estimates for GDP, unemployment and inflation. The central bank could provide clearer guidance on what it will take to raise rates in the future. The Fed is also expected to keep rates unchanged.
Wednesday marks the Fed’s first decision since Chairman Jerome Powell unveiled a policy shift toward greater tolerance of inflation, effectively pledging to keep interest rates low for longer. Investors widely expect the central bank to maintain its downbeat stance on the economy. This will also be the last meeting before the U.S. presidential election.
In corporate news, one of the hottest initial public offerings of 2020 will open for trading on Wednesday. Data storage software company
Snowflake is priced at 30 times forward revenue and even got a rare vote of confidence from Berkshire Hathaway. Snowflake expects to go public at a share price between $100 and $110, according to an updated S-1 filing from Monday.
Prices for the 10-Year Treasury were higher, weighing yields to 0.67% from Tuesday’s 0.68%. Treasury prices and yields move in opposite directions.
Oil prices increased $1.14 to $39.42 U.S. a barrel.
Gold prices regained $6.30 to $1,972.50 U.S. an ounce.