FM:CC - Stocks Head Skyward as Investors Brace for Fed Decision
Stocks rose Wednesday as investors awaited another likely interest rate hike from the Federal Reserve as it fights to tame surging inflation.
The Dow Jones Industrials regained 159.23 points to break for lunch at 30,865.46.
The S&P 500 moved higher 21.08 points to 3,877.01.
The NASDAQ Composite took on 48.12 points to 11,473.17.
General Mills' stock hit an all-time high following its latest earnings report. Defense stocks also rose as Russian President Vladimir Putin called for a partial military mobilization.
The central bank on Wednesday is expected to deliver its third consecutive 0.75-percentage-point rate hike.
A higher-than-expected consumer price index reading in August and hawkish comments on rate hikes from Fed leaders have weighed on stocks, with more pressure likely ahead as the central bank continues its battle.
Investors will be monitoring the central bank's longer-term projections, paying close attention to the terminal fed funds' rate last projected in June to hit 3.8% in 2023. Some economists, however, expect the Fed to raise that forecast above 4%.
Treasury prices resumed their downward travel, lifting yields to Tuesday's 3.56%. Treasury prices and yields move in opposite direction.
Oil prices decreased 81 cents to $83.13 U.S. a barrel.
Gold prices gained $4.30 to $1,675.240 U.S. an ounce.