14 hrs ago
Global Stocks Rise Ahead of Closely Watched Fed Decision
Stock markets around the world rose slightly on Wednesday.
Investors were waiting for the Federal Reserve to announce its interest-rate decision.
Most traders expected the Fed to raise rates by 25 basis points.
Higher interest rates can make borrowing more expensive.
Bond yields and oil prices had recently risen, worrying investors about inflation.
Oil prices fell after Saudi Arabia offered more crude for delivery.
Technology and communication-services companies helped lift US markets.
The Fed’s decision and Chair Kevin Warsh’s press conference were scheduled for later that day.
MSCI’s global equities index rose 0.35% after two sessions of losses.
Investors largely expected the Federal Reserve to raise rates by 25 basis points.
The S&P 500 and Nasdaq gained, while the Dow Jones Industrial Average fell.
European markets advanced, including the STOXX 600, FTSE 100 and major continental benchmarks.
Oil prices declined after Saudi Arabia offered additional crude cargoes, easing supply concerns.
- Who
- Global investors, the Federal Reserve and Chair Kevin Warsh were central to the market activity.
- What
- Global stock markets edged higher as investors prepared for a Federal Reserve interest-rate decision, which markets largely expected to be a 25-basis-point increase.
- Where
- Markets in the United States, Europe and other global regions were affected.
- When
- Wednesday, September 16, 2026; the Federal Reserve decision was scheduled for 1800 GMT, followed by a press conference.
- Why
- Investors were positioning for the Fed decision while assessing inflation concerns linked to government bond yields, oil prices and economic conditions.
Rate Increase Expected
Uncertainty Remains
Federal Reserve decision
Rate Increase Expected
More than 90% of market pricing pointed to a 25-basis-point rate increase, and investor Gerry Sparrow said he expected rates to rise.
Uncertainty Remains
The decision had not yet been announced, and markets had declined in the previous two sessions while discounting uncertainty.
Inflation and economic outlook
Rate Increase Expected
Rising bond yields and oil prices were cited as signs of inflationary pressure that could support higher interest rates.
Uncertainty Remains
Higher yields and oil prices also raised concerns about the broader economic outlook and weighed on markets.
Oil supply risks
Rate Increase Expected
Additional crude cargoes offered by Saudi Arabia appeared to reduce concerns about the scale of supply disruptions.
Uncertainty Remains
Passage through the Strait of Hormuz remained constrained as attacks in the region intensified, leaving supply risks in place.
Key facts
- Global equities
- MSCI’s global equities index rose 0.35%.
- Expected Fed action
- Markets priced in a more than 90% probability of a 25-basis-point rate increase.
- US market performance
- The Dow fell 0.18%, the S&P 500 rose 0.26% and the Nasdaq gained 0.60%.
- European market performance
- The STOXX 600 rose 0.44%, while Britain’s FTSE 100 gained 0.28%.
- Brent crude
- Brent crude futures fell 2.4% to $106.01 per barrel.
- US 10-year yield
- The benchmark US 10-year Treasury yield fell 3.3 basis points to 4.963%.
- Gold
- Spot gold rose 1.3% to $4,348.69 per ounce.
Quotes
Gerry Sparrow
Chief investment officer at Sparrow Capital Management
“My expectation is that since interest rates breached the 5 per cent handle or are bumping up against, that means that there’s inflation in the system... I think they’ll raise interests.”
thehindubusinessline.com
“The market has been trading down into the Fed decision, which it typically does, because it is discounting the uncertainty.”
thehindubusinessline.com
Sources
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