Treasuries Rally on Eve of Fed Decision; Oil Sinks: Markets Wrap

U.S. stock gauges edge higher as real-estate shares gain
Fed conducts repo operation after money-market rates jump

Peter Schaffrik, global macro strategist at RBC Capital Markets, on the possible economic impact of the Saudi attack.Source: Bloomberg

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By Vildana Hajric and Brendan Walsh

September 16, 2019 at 9:50 PM UTC

Updated on

September 17, 2019 at 8:02 PM UTC

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Treasuries rallied and stocks eked out a gain a day before the Federal Reserve is expected to cut interest rates. Oil plunged as Saudi Arabia restarted the plant damaged in a weekend attack.

Crude gave back some of Monday’s 15% surge as Saudi officials said they had restored just under half the output lost at the Abqaiq plant, one of the world’s biggest oil facilities. The S&P 500 Index posted a small advance, with dividend paying real-estate shares faring best. Ten-year Treasury yields fell toward 1.8% and the dollar weakened after the New York Fed took action to calm money markets, injecting billions in cash to quell a surge in short-term rates that was threatening to drive up borrowing costs for companies and consumers.