Added by Erik West on September 16, 2014
US equities advanced on the main indices ahead of the results of Wednesday’s Federal Reserve meeting on interest rate policy – in anticipation the fed will continue to follow its previously announced policy on a possible increase in its key lending rate.
Janet Yellen, the Fed Chairwoman, is expected to make remarks. after a two-day meeting, which are widely expected to clarify the term “considerable time” in its policy statement by defining the time more precisely.
Yellen previously stated the Federal Reserve would wait a “considerable time” after the end of its bond-buying program to start to raise interest rates; Yellen previously said the term meant about six months. The bond-buying program is on track to end next month.
Wednesday’s policy statement will also include estimates for inflation, unemployment, and growth. The Federal Reserve’s June forecasts are not likely to change as a result of uncertainty as a result of US involvement in Iraq, plus the conflict between Ukraine and Russia.
The Dow Jones Industrial Average was up 0.7% or 110 points; the Nasdaq was ahead 0.5% to 4541 and the S&P advanced 0.8% to 1999 at early afternoon trading.
In market data, the yield on US 10-year Treasury notes was down to 2.564% as bond prices increased. Energy stocks were up based on crude oil futures up to US$98 a barrel, or an increase of 2%. Income producing stocks like real-estate investment trusts were up as well.
In other markets, European markets were down on Tuesday, ahead of Scotland’s upcoming referendum on independence. Poll results are inconclusive and are too close to call. London’s FTSE was down 0.4%. The Stoxx Europe 600 declined 0.3%.