Stocks are also gaining ground as investors brace for more Fed tightening

U.S. stocks rose in late trading after trading between gains and losses on Monday as investors braced for a Federal Reserve meeting expected to shed more light on the central bank’s monetary policy plan.

what’s happening
  • The Dow Jones Industrial Average DJIA;
    + 0.64%
    It rose 153 points, or 0.5%, at 30,976 after falling from a low of 263 points.

  • S&P 500 SPX,
    + 0.69%
    It rose 20 points, or 0.5%, to 3,894.

    + 0.76%
    It rose 70 points or 0.6% at 11,519.

Last week, the Dow Industrials fell 4.1% to end at 30,822.42, while the Nasdaq Composite fell 5.5% on the week to 11,448.40. The S&P 500 ended Friday at 3,873.33 — down 0.7% for the session and 4.8% for the week — to close at 3,900, its lowest close since July 18 and below key chart support.

In a chart: Why Stock Market Bears Are Seeing June Lows After S&P 500 Falls Below 3,900

What drives the markets?

Stocks looked for higher momentum on Monday after last week’s sharp decline, but the market focused on this week’s two-day policy-making Federal Open Market Committee meeting, which ends on Wednesday. A three-quarter point acceleration is expected, and emphasis will be placed on the corresponding point estimates.

Stocks recovered from earlier losses and turned positive as Wall Street rallied Ralph Lauren CorporationRL
Edward Moya, senior U.S. market analyst at Oanda Corp., said it gained visibility and value in battered homebuilders and airlines.

Shares of Ralph Lauren rose 2.3 percent after the company unveiled its strategic growth plan, saying it expects to return nearly $2 billion in cash flow to shareholders in fiscal 2025 through dividends and stock buybacks. It is also targeting mid- to high-single-digit compounded annual revenue growth over the next three years.

“High-income households still seem to be in a good position to handle the next rate hike,” Moya said by phone.

Even so, he said, “rising pessimism and reduced appetite for all risk assets.” We cannot take extreme positions ahead of the Fed’s decision, which is why trading will be volatile in the next 48 hours.

watch out This week he is fed to put a ‘strong foot on the brake pedal’

Equities felt the heat as Treasury yields continued to rise, driven by the policy-sensitive 2-year rate TMUBMUSD02Y;
Approaching 4%, some say this level could send tremors through the financial markets. The 2-year yield ended the New York trading session up 4% or more when it closed at 4.127% on October 16, 2007. Rising yields make bonds more attractive than stocks.

Keywords: As the S&P 500 could fall to 3,300, “more pain is coming,” said the founder of Interactive Brokers.

The British stock market closed on Queen Elizabeth II’s funeral in London, which was attended by heads of state including US President Joe Biden.

What we need to know: The mighty dollar may be about to crack, says this strategist, who offers stocks to watch from both sides.

Companies focus
  • Shares of three key vaccine makers fell on Monday following Sunday’s “60 Minutes” interview with President Joe Biden, who said the pandemic was over. Shares of Modern Inc.
    It decreased by 9.5 percent. Pfizer Inc.
    It decreased by 1.9% and the German partner BioNTech SE
    It is down 9.5%.

  • AutoZone Inc.
    Shares fell 2.8% after the auto-parts retailer reported fiscal fourth-quarter profit and sales that rose better than expected, helped by continued strength in its aftermarket business.

  • German car manufacturer Volkswagen AG
    It is targeting a valuation of up to $71.5 billion (€75 billion) in an initial public offering for Porsche, one of the largest IPOs ever seen in Europe. Volkswagen’s board announced on Sunday that it intends to list a share between 76.50 and 82.50 euros, in the mid-range expected by analysts. Volkswagen of America common stock VLKPF;
    + 3.19%
    It grew by 3.2 percent.

Hear from Ray Dalio at the Best New Ideas in Money Festival, September 21-22 in New York. The hedge fund pioneer has strong views on where the economy is headed.

– Steven Goldstein contributed to this article.

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