S&P 500 ends higher after choppy session ahead of Fed

Record ID: 1671144

  • Title: S&P 500 ends higher after choppy session ahead of Fed
  • Date: 3rd May 2022
  • Summary: RICHMOND, VIRGINIA, UNITED STATES (MAY 3, 2022) (REUTERS) (SOUNDBITE) (English) RIVERFRONT INVESTMENT GROUP, SENIOR MARKET STRATEGIST, REBECCA FELTON, SAYING: "Well, today we have a bounce in the markets, maybe somewhat of a relief rally, maybe some oversold conditions. People are expecting a hawkish move out of the Federal Reserve tomorrow, a 50 basis point rate hike. So, I think a lot of that news is already priced into the market and so folks are starting to dip their toes again." WHITE FLASH (SOUNDBITE) (English) RIVERFRONT INVESTMENT GROUP, SENIOR MARKET STRATEGIST, REBECCA FELTON, SAYING: "Well, we believe that the Fed will announce a 50 basis point rate hike tomorrow. We are right there with consensus, and we think that that is the appropriate move at this time. Obviously, they have committed to doing whatever it takes to tamp down inflation. And so we believe that they will do exactly what they have said, what they will what they telegraphed what they will do. But certainly the tone, the language of their comments that come out of the meeting are going to be very important in terms of whether or not those are more hawkish than what the Street is expecting. That could cause some downside pressure as well."
  • Embargoed: 17th May 2022 21:05
  • Keywords: Dow Jones Federal Reserve Nasdaq S&P 500 U.S. stocks Wall Street equities interest rate hike markets
  • Location: VARIOUS
  • City: VARIOUS
  • Country: USA
  • Topics: Economic Events,Equities Markets,United States
  • Reuters ID: LVA002553203052022RP1
  • Aspect Ratio: 16:9
  • Story Text: The S&P 500 Index ended higher on Tuesday (May 3) after a choppy session in which each of the major indexes fluctuated between gains and losses as a key meeting of the Federal Reserve got under way.
    Investors picked up shares of financials and technology companies ahead of Wednesday's expected announcement by the Fed.
    Eight of the 11 major S&P 500 sectors rose, with energy, SPNY and financials leading the gains.
    The U.S. central bank kicked off its two-day policy meeting on Tuesday.
    Traders see a 99.9% chance of a 50 basis-point hike on Wednesday, according to CME's FedWatch Tool, which would mark the largest rate hike by the Fed since May 2000.
    The spotlight stays on Fed Chair Jerome Powell's news conference on Wednesday (May 4) for comments on the future path of interest rates and balance-sheet reduction.
    According to preliminary data, the S&P 500 gained 20.04 points, or 0.48%, to end at 4,175.42 points, while the Nasdaq Composite gained 25.99 points, or 0.21%, to 12,562.01.
    The Dow Jones Industrial Average rose 56.27 points, or 0.17%, to 33,117.77.
    (Production: Aleksandra Michalska)
  • Copyright Holder: REUTERS
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