NEW YORK: Wall Street stocks climbed early Wednesday ahead of a Federal Reserve monetary policy announcement that is expected to acknowledge progress in combatting inflation.
After enacting four straight 0.75-point increases to its benchmark lending rate, the US central bank is expected to announce a smaller, half-point rise on Wednesday.
The market will focus on Fed Chair Jerome Powell’s tones in a press conference after the policy meeting, which comes on the heels of a consumer price index report showing moderation in inflation.
Wall Street gains as CPI data calms jitters
“When inflation is too high but falling, it is no longer necessary to chase it with outsized rate increases,” said FHN Financial’s Chris Low.
But he cautioned that Fed “hawks will not quietly retreat as long as inflation is much too high.”
About 25 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 34,263.54.
The broad-based S&P 500 also advanced 0.5 percent to 4,037.65, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 11,290.42.
Among individual companies, Delta Air Lines rose 1.9 percent as it raised its fourth-quarter financial forecasts and predicted solid earnings growth in 2023.
“Demand for air travel remains robust as we exit the year and Delta’s momentum is building,” said Chief Executive Ed Bastian.
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