Sept. 19 (BP) — Stocks on Monday recovered slightly from last week’s losses in a volatile trading session ahead of the Federal Reserve’s two-day policy meeting starting on Tuesday.
The Dow Jones Industrial Average jumped 197.26 points, or 0.64%, to close at 31,019.68. The S&P 500 gained 0.69% to 3,899.89, and the Nasdaq Composite added 0.76% to end at 11,535.02.
Stocks were down early in the day, with the S&P and the Nasdaq losing nearly 1%. However, they were able to bounce back and finish the day in the green.
Bonds were on the rise, with the benchmark U.S. 10-year treasury touching 3.5%, its highest level since 2011.
The Federal Reserve is expected to announce another raise to its benchmark rate on Wednesday, as it continues to try and battle inflation. Stocks fell last week in anticipation of more aggressive tightening from the Fed.
“We’re in a wait-and-see approach and markets are waiting for some kind of bullish or bearish catalyst to send us out of this trading range,” said Adam Sarhan, CEO of 50 Park Investments, told CNBC. “The markets are struggling for direction and that’s the fundamental news.”
The World Bank has said policy actions could make the difference between a recession and no recession amid a string of financial crises in emerging markets and developing economies, along with central banks hiking interest rates to control inflation.
Nine out of the 11 S&P 500 sectors ended the day positive. Major tech stocks like Apple and also Google rose today.