Wall Street treads higher as focus shifts to Fed | Reuters - Firstpost
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Wall Street treads higher as focus shifts to Fed | Reuters

  Updated: Jun 15, 2016 23:15 IST

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Wall Street moved higher on Wednesday after four days of losses as lower chances of an interest rate hike whet investor appetite for risk.

The Federal Open Market Committee (FOMC) will release a policy statement at 2:00 p.m. ET (1800 GMT). Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. ET.

Yellen had hinted at higher chances of a rate hike than the markets had priced in, but weak May jobs data and economic repercussions of a possible Brexit forced her to take a dovish stance last week.

"The Fed is trying to walk a fine line here," said Art Hogan, chief market strategist at Wunderlich Securities in New York. The Fed does not want the market to discount a rate hike this year, he said.

Traders see a less than 40 percent chance of an interest rate increase until December, according to CME Group's FedWatch tool.

The S&P financial index rose 1.12 percent, reversing its losses in the past four days.

"The financials are outperforming the broader index simply because they had underperformed it in the past four days," Hogan said.

Bank of America rose 2.8 percent, giving the biggest boost to the S&P 500. The bank plans to cut 8,000 jobs, according to the Financial Times.

At 11:06 a.m. ET, the Dow Jones Industrial Average was up 66.74 points, or 0.38 percent, at 17,741.56.

The S&P 500 was up 7.67 points, or 0.37 percent, at 2,082.99.

The Nasdaq Composite was up 19.52 points, or 0.4 percent, at 4,863.07.

Eight of the 10 major S&P sectors were higher.

Freeport, which struck a funding deal for a copper project, rose 6.2 percent to $10.8.

May producer price index rose by a better-than-expected 0.4 percent, compared with the 0.3 percent rise analysts had expected.

Advancing issues outnumbered decliners on the NYSE by 2,156 to 714. On the Nasdaq, 1,866 issues rose and 777 fell.

The S&P 500 index showed nine new 52-week highs and one new low, while the Nasdaq recorded 21 new highs and 25 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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