Stock markets fluctuated on Wednesday. Investors were waiting for the Federal Reserve’s policy meeting events to decide on the course of action. They wanted to gauge the outlook for stock markets following a downfall of about 2% in global shares this month.
The market’s trying to figure out what to do next – stated Jerry Braakman, the chief investment officer of First American Trust in California. He added that in such times, there is always some volatility, and it is essential to figure out if the tech run is here to stay. Tech stocks rallied recently after a short dip.
Investors are mainly focused on the Fed’s meeting, though some other events are scheduled this week. Analysts think that the agency will maintain its dovish stance. The Fed declared earlier that it would take a more relaxed approach to inflation. Meanwhile, the markets stay cautious in the face of the U.S. presidential election, the possibility of a no-deal Brexit, and the pandemic.
Chair Jerome Powell’s conference was scheduled yesterday, while Bank of Japan, Bank of England, and Bank Indonesia policy decisions are due on Thursday. Furthermore, Friday sees the quarterly expiration of futures and options on indexes, along with stocks in U.S. markets.
How are the stocks faring?
U.S. stocks ended in the green on Tuesday. The S&P 500 soared for a third consecutive trading session, led by communication services, along with real estate and consumer discretionary shares. However, Citigroup Inc., JPMorgan Chase & Co., and Bank of America Corp. pushed financials in the red. Still, gains in technology shares helped offset a late slide in financials. Crude oil also surged forward, but the dollar changed slightly.
In Europe, Hennes & Mauritz AB gained the most among fashion retailers after surpassing profit estimates. Investors also raised their expectations for Germany’s economy. The offshore yuan rallied to the highest level in a year. Meanwhile, stocks in Shanghai jumped on evidence that China is rebounding after the crisis.