U.S. Stocks Rebound With Tech in Front as Fed Meeting Begins

Updated on

98% Chance of a Fed Hike This Week According to Poll

U.S. indexes advanced, signaling stock gains for the first time in three days, as tech stocks bounced and investors awaited Wednesday’s Federal Reserve policy decision.

The S&P 500 added 0.3 percent to 2,436 at 10 a.m. in New York. The benchmark fell 0.1 percent yesterday as a rout in technology shares deepened. The Dow Jones Industrial Average advanced 0.2 percent to 21,280 on Tuesday.

  • Tech shares up 0.8% for biggest jump in more than a week; State Street Corp. and Comerica leading gains in financials, up at least 1.7%
  • Energy stocks little changed as oil drops 1.1%
  • Real estate, staples and telecom shares down
  • Volume in S&P 500 about on par with 30-day average at this time; elevated trading in tech and financial stocks
  • VIX down to 10.7; climbed 13% in the past two days, the biggest back-to-back gains in almost a month
    • With the Fed kicking off a two-day meeting today, traders are pricing in a 97 percent chance the central bank will raise interest rates for the second time this year on Wednesday, fed fund futures show
    • NFIB Small Business Optimism unchanged at 104.5; est. 104.5
    • Producer-price index was unchanged (matching forecasts) following a 0.5% gain the prior month
    • The Trump administration laid out its highly anticipated plan for overhauling bank rules, calling on the government to ease, though not eliminate, many of the strictures that were imposed on Wall Street after the financial crisis
    • Attorney General Jeff Sessions will testify publicly Tuesday before the Senate Intelligence Committee. He will likely face pressure to explain his role in the firing of James Comey and contacts that he and associates of President Donald Trump had with Russian officials
    • After-market Tuesday: H&R Block (HRB)

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