Financials News

US stocks rise ahead of Fed decision

US stocks rise ahead of Fed decision

New York: Wall Street stocks bounced in early trading Tuesday, recovering some of the prior session’s losses ahead of a Federal Reserve announcement on interest rates.

About 15 minutes into trading, the Dow Jones Industrial Average stood at 24,747.53, up 0.6 percent.

The broad-based S&P 500 gained 0.3 percent to 2,722.19, while the tech-rich Nasdaq Composite Index advanced 0.4 percent to 7,371.87.

Large declines by major technology companies on Monday led to a pullback of more than one percent on major indices on fears the tech industry could face a regulatory crackdown following a Facebook data scandal.

But investors took the opportunity early Tuesday to buy in at the reduced prices, setting aside worries about trade conflicts and US monetary policy.

The Fed is widely expected to lift interest rates on Wednesday, but the central bank’s policy statement will be scrutinized on whether it implies a more aggressive approach to further hiking rates.

Facebook was under pressure again, falling 1.8 percent in the wake of reports that a data analysis firm hired by Donald Trump’s presidential campaign misused data of some 50 million users.

Oracle slumped 8.7 percent after reporting a six percent rise in quarterly revenues to $9.8 billion. However the company’s forecast for cloud services sales growth lagged many analysts’ expectations.

AFP