BUSINESS US stocks open higher ahead of Fed's rate decision

BUSINESS

US stocks open higher ahead of Fed's rate decision

Xinhua

23:36, June 19, 2019

NEW YORK, June 19 (Xinhua) -- US stocks opened higher on Wednesday, as investors have been waiting for the US Federal Reserve's latest decision on monetary moves.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, US. (File photo: VCG)

Shortly after the opening bell, the Dow Jones Industrial Average rose 44.44 points, or 0.17 percent, to 26,509.98. The S&P 500 was up 2.59 points, or 0.09 percent, to 2,920.34. The Nasdaq Composite Index increased 2.74 points, or 0.16 percent, to 7,966.63.

Shares of Adobe rose over 3.2 percent, after the US software giant posted better-than-expected earnings for the first quarter, which were driven by its strong Creative Suite business and digital media offerings.

Eight of the 11 primary S&P 500 sectors traded higher around early morning sessions, with the industrials sector up nearly 1.9 percent, leading the gainers.

Investors and analysts anticipate the US central bank to announce its stance on interest rates at 2 p.m. EST (1800 GMT). US Federal Reserve chair is also scheduled to speak at a news conference after the announcement.

The broad market has expected the Fed to remain its benchmark rates unchanged, yet also priced in several rate cuts later this year.

The probabilities of "no change" in Fed's interest rates hit nearly 80 percent shortly after the opening bell, according to the CME Group's FedWatch tool, with the other 20 percent centralizing on an easing monetary policy.

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