investUS stocks closed flat as people prepared for this week’s Fed meeting.
The S&P 500 index rose 3.21 points, or 0.07%, to 4,453.53; The Nasdaq index rose 1.9 points, or 0.01%, to 13,710.24. The Dow Jones Industrial Average rose 6.06 points, or 0.02%, to 34,624.3.
The Fed’s two-day policy meeting will begin on the 19th. According to CME Group’s FedWatch tool, which measures market pricing for federal funds futures, traders believe there is a 99% chance the Fed will keep interest rates unchanged when it issues its interest rate decision on the 20th. Will keep. The Fed will also release market forecasts.
There is less consensus on the Fed’s actions in November. The market expects that interest rates are likely to increase by about 31 percent. Goldman Sachs economists said over the weekend that a rate hike in November is unlikely.
Stephanie Lang, chief information officer of Homeric Berg, said, “There’s something wrong in the market: Everyone knows they’re making a statement at this meeting, but what will their next message be?” “It’s a wait-and-see moment.” let’s look at. Let’s see what kind of further guidance we can get from the Fed.”
Apple rose 1.69%. Goldman Sachs and Morgan Stanley both gave optimistic outlooks on demand for the new iPhone.
Also thanks to the United Auto Workers (UAW)strikeStill on the rise, Ford fell 2.14%. Shares of Stellantis and General Motors, other automakers facing a union standoff, fell more than 1.6%.
The S&P 500 and Nasdaq fell last week, their second consecutive weekly decline. The Dow ended the week 0.1% higher.
Deutsche Bank believes the selloff in Iridium stock provides investors with a strong entry point.
The company has upgraded its rating on Satellite Communications stock from Hold to Buy in its latest report. Analyst Edison Yu blamed management’s later-than-expected pass-through phone opportunity for the stock’s nearly 21% decline since reporting second-quarter earnings in July.
“While early adoption rates are really low, we think smartphone OEMs are still committed to deploying satellite connectivity next year,” Yu said. “This should benefit Iridium because it will charge a usage fee for each device, regardless of the end user’s usage.”
What are investors thinking this week? “Strikes and rate hikes,” said Sam Stovall, chief investment strategist at CFRA Research.
He said investors would pay attention to this week’s Fed meeting and actions by global central banks including Japan, Switzerland and Sweden.
“Investors are awaiting possible action from global central banks,” he said.
In the United States, the UAW strike that began last week has raised questions about potential inflation pressures, Stover said. He said that the ultimate goal of the auto workers’ strike is a nationwide strike.