NEW YORK: Wall Street stocks climbed early Wednesday ahead of a key Federal Reserve decision that will be scrutinized for nuances in the central bank’s inflation-fighting posture.
Most economists are expecting a third straight three-quarter point rate hike when the meeting concludes Wednesday. But there is a chance the Fed could opt for a full point increase.
Besides the decision itself, investors are looking for Fed Chair Jerome Powell’s “outlook for the upcoming period as well as the tone of his commentary,” said Gregori Volokhine of Meeschaert Financial Services
Wall Street opens lower as Fed poised to hike key rate
Powell has committed to a tough line on inflation, especially since a major address in Wyoming in August. Any softening in that tone could boost stocks Wednesday, analysts said.
“People want to know how aggressive the Fed will be, and for how long,” Volokhine said.
About 25 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 30,870.99.
The broad-based S&P 500 also advanced 0.5 percent to 3,876.70, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 11,458.81.
Among individual companies, General Mills jumped 5.6 percent after reporting better-than-expected quarterly profits.
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