BUSINESS Dow jumps over 500 points ahead of Fed meeting, US inflation data

BUSINESS

Dow jumps over 500 points ahead of Fed meeting, US inflation data

Xinhua

08:43, December 13, 2022

NEW YORK, Dec. 12 (Xinhua) -- Wall Street's major averages rallied on Monday as investors awaited a key U.S. inflation report and the Federal Reserve's policy meeting.

File photo: AFP

The Dow Jones Industrial Average rose 528.58 points, or 1.58 percent, to 34,005.04. The S&P 500 increased 56.18 points, or 1.43 percent, to 3,990.56. The Nasdaq Composite Index was up 139.12 points, or 1.26 percent, to 11,143.74.

All the 11 primary S&P 500 sectors ended in green, with energy and utilities up 2.49 percent and 2.27 percent, respectively, leading the advance.

The above market reactions came as the highly-anticipated U.S. consumer price index for November is due on Tuesday.

The Fed will start a two-day policy meeting on Tuesday, followed by a rate decision on Wednesday.

Markets are pricing in a 74.7 percent chance of a 50 basis point hike at the Fed's December meeting, according to the CME FedWatch tool on Monday.

Despite Monday's strong rally, analysts said conditions for a sustained upturn are not yet in place.

While the Fed is expected to moderate the pace of rate hikes to 50 basis points at this week's meeting, "the new dot-plot, economic projections, and comments around the likely trajectory of rates next year, will be key drivers for markets and are likely to spark further volatility," UBS analysts said Monday in a note.

Last week, the Dow fell 2.8 percent, the S&P 500 dropped 3.4 percent, and the tech-heavy Nasdaq tumbled 4 percent, as market participants remained concerned about the economic landscape.

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