Stock Market Up Ahead of FOMC Meeting
US stocks are elevated ahead of the FOMC meeting that is scheduled for later today and that will shed light on the Fed's position.
The US stock market closed slightly higher than the previous day as trading finished on Tuesday.
The Dow Jones was up by 0.17%, and the Nasdaq Composite gained a meager 0.22%. The S&P 500 climbed the highest with a gain of 0.25%.
The stock market is about to heat up as the FOMC meeting minutes will come out later today. Those minutes are likely to focus on the recent inflation news and where inflation might be headed, as well as the Fed’s stance on policy that will trend either hawkish or dovish.
The minutes will be crucial to the stock market moving forward, as they indicate what the Fed is doing. Investors will either be fired up to trade or will start to be more reserved as a result of these minutes.
New Records for the Stock Market
The market closed with record highs once again thanks to the Nasdaq climbing slightly higher as well as the other two major indices. These highs indicate a healthy market that is keeping a positive outlook on inflation. If new inflation information breaks that points toward worsening conditions, though, we can expect a flurry of market dumping and reserved trading.
As high as the stock market is right now, it is also in a vulnerable position where trading hinges heavily on inflation. Traders are eager to invest but wary of what will happen to their assets if inflation increases again.
At the time of this writing, the stock market was closed and still registering yesterday’s numbers. Premarket trading will begin soon, and we expect the trading to be reserved and mild until the FOMC meeting is finished. At that point, the market should react quickly and with volatility.
The information from the meeting will indicate how well the economy is doing and what investors should do with soft earnings reports. A high inflation rate will mean that soft earnings are a warning for investors to stay away.
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