Global Markets-US stocks rebound ahead of Fed decision, tech earnings
SPY•Oil, yields and Fed expectations in focus
A continued drop in oil prices and Treasury yields helped ease some nerves ahead of the Fed's rate decision that will come at the conclusion of its two-day meeting on Wednesday.
A surge in oil prices last week, driven by renewed fighting in the U.S.-Iran conflict, had raised expectations of a possible rate hike as policymakers grapple with inflation that remains stubbornly above the Fed's 2% annual target.
"Higher oil prices driven by Middle East tensions have increased inflation risks and strengthened the case for a rate hike, but we think more evidence is needed to win majority support," Oscar Munoz, head of U.S. economics at TD Securities, wrote in a note.
Oil has weakened this week following Washington's abrupt suspension of airstrikes on Iran on Saturday. Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on Tuesday.
