- US stocks moved higher on Wednesday as investors geared up for a Fed interest rate decision.
- Chairman Jerome Powell is expected to raise rates by 75 basis points to tame inflation.
- Powell's press briefing should give investors more insight as to how much more tightening the Fed may do into year-end.
US stocks rose on Wednesday ahead of the Federal Reserve's expected decision to raise interest rates for the fifth time this year.
Fed Chairman Jerome Powell is expected to raise rates by 75 basis points, though some argue he should raise them by 100 basis points or more in an aggressive bid to tame inflation.
August's hot CPI report showing inflation remains sticky means investors will also be focusing on Powell's press briefing at 2:30 p.m. ET, in which he is likely to shed some light on how many more rate increases to expect from the Fed going into the end of the year.
Current market expectations suggest the Fed will hike by another 75 basis points at its November FOMC meeting, followed by another 50-basis-point increase at its December meeting. That would put the fed funds rate between 4.25% and 4.50%. At the start of the year, it was between 0% and 0.25%.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:
- S&P 500: 3,879.91, up 0.62%
- Dow Jones Industrial Average: 30,882.24, up 0.57% (176.01 points)
- Nasdaq Composite: 11,472.67, up 0.42%
Here's what else is happening this morning:
- Germany is nationalizing Uniper, its leading importer of Russian natural gas, in a deal that underscores Europe's energy crisis. Uniper announced Wednesday the German government will acquire a 99% stake in the utility.
- President Vladimir Putin hinted Russia is ready to use nuclear force to hold onto its territory in Ukraine. In a televised address, Putin also said Moscow is calling up more troops to join the forces in Ukraine.
- Oil rose, the euro tumbled, and the safe-haven dollar rose Wednesday after Putin accused Western allies of "nuclear blackmail" and hinted Russia is ready to use its own nuclear weapons if needed.
- JPMorgan CEO Jamie Dimon will tout the US economy's strength but warn its challenges could end in disaster, during a hearing in front of the House Financial Services Committee on Wednesday.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil jumped 1.62% to $85.30 per barrel. Brent crude, oil's international benchmark, rose 1.66% to $92.12.
- Gold rallied 0.63% to $1,681.60 per ounce.
- The yield on the 10-year Treasury fell 1 basis points to 3.55%.
- Bitcoin rose 1.45% to $19,304, while ether climbed 1.38% to 1,355.