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Wall Street ended mostly flat on Monday as investors looked forward to the outcome of the Federal Reserve’s September FOMC which begins on Tuesday. However, all three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.02% or 6.06 points to close at 34,624.30 points after giving up almost 107 points earlier gains from the day.
The S&P 500 rose less than 0.1% or 3.21 points, to finish at 4,453.53 points. Technology and energy stocks ended in the green.
The Technology Select Sector SPDR (XLK) rose 0.3%, while the Energy Select Sector SPDR (XLE) advanced 0.1%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq climbed 0.01% or 1.9 points to end at 13,710.24 points.
The fear-gauge CBOE Volatility Index (VIX) was up 1.52% to 14. A total of 9.44 billion shares were traded on Monday, lower than the last 20-session average of 10.05 billion. Decliners outnumbered advancers on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.74-to-1 ratio favored declining issues.
Investors Await Outcome of Fed’s Meeting
U.S. stocks rallied earlier in the day but gave up most of the gains in the later half as investors looked forward to the outcome of the Federal Reserve’s meeting, which begins on Tuesday. The Fed is expected to keep interest rates unchanged in the current range of 5.25%-5.5%.
The S&P 500 fell 1.2% on Friday after strong-than-expected economic data and soaring energy prices reignited fears that inflation might stay well above the Fed’s 2% target for a longer time.
This has once again raised concerns that even if the Fed keeps its interest rates unchanged in its September meeting more rate hikes could be implemented this year.
Oil prices have continued to soar in September. U.S. crude oil futures ended above $90 a barrel on Monday, hitting its highest level since at least November. Sky-high oil prices have raised concerns that inflationary pressures could drag on for a longer period, hampering economic growth.
Although possibilities are high that the Fed won’t hike interest rates this month, market participants will get to know the decision on Wednesday. More importantly, it’s not only the Fed’s decision that investors will be looking forward to but also will try to get a clear picture of the Fed’s future course of action.
Economic Data
In economic data released on Monday, home builder confidence fell in September. The National Association of Home Builders’ monthly confidence index dropped 5 points to 45 in September, its lowest level in five months.
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Stock Market News for Sep 19, 2023
Wall Street ended mostly flat on Monday as investors looked forward to the outcome of the Federal Reserve’s September FOMC which begins on Tuesday. However, all three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.02% or 6.06 points to close at 34,624.30 points after giving up almost 107 points earlier gains from the day.
The S&P 500 rose less than 0.1% or 3.21 points, to finish at 4,453.53 points. Technology and energy stocks ended in the green.
The Technology Select Sector SPDR (XLK) rose 0.3%, while the Energy Select Sector SPDR (XLE) advanced 0.1%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq climbed 0.01% or 1.9 points to end at 13,710.24 points.
The fear-gauge CBOE Volatility Index (VIX) was up 1.52% to 14. A total of 9.44 billion shares were traded on Monday, lower than the last 20-session average of 10.05 billion. Decliners outnumbered advancers on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.74-to-1 ratio favored declining issues.
Investors Await Outcome of Fed’s Meeting
U.S. stocks rallied earlier in the day but gave up most of the gains in the later half as investors looked forward to the outcome of the Federal Reserve’s meeting, which begins on Tuesday. The Fed is expected to keep interest rates unchanged in the current range of 5.25%-5.5%.
The S&P 500 fell 1.2% on Friday after strong-than-expected economic data and soaring energy prices reignited fears that inflation might stay well above the Fed’s 2% target for a longer time.
This has once again raised concerns that even if the Fed keeps its interest rates unchanged in its September meeting more rate hikes could be implemented this year.
However, tech stocks rallied on Monday. Shares of Meta Platforms, Inc. ((META - Free Report) ) rose 0.8%, while Alphabet Inc. ((GOOGL - Free Report) ) gained 0.6%. Meta Platforms carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Prices Continue to Soar
Oil prices have continued to soar in September. U.S. crude oil futures ended above $90 a barrel on Monday, hitting its highest level since at least November. Sky-high oil prices have raised concerns that inflationary pressures could drag on for a longer period, hampering economic growth.
Although possibilities are high that the Fed won’t hike interest rates this month, market participants will get to know the decision on Wednesday. More importantly, it’s not only the Fed’s decision that investors will be looking forward to but also will try to get a clear picture of the Fed’s future course of action.
Economic Data
In economic data released on Monday, home builder confidence fell in September. The National Association of Home Builders’ monthly confidence index dropped 5 points to 45 in September, its lowest level in five months.