Global stocks hold gains after Fed decision, oil prices rise
SPY•Global stocks and major Wall Street indexes gained after the Federal Reserve held rates at 3.75%-4.00%, while oil rose on renewed supply concerns after an attack on a Saudi refinery. Brent settled up 1% at $115.32 a barrel, and U.S. crude rose 3% to $102.78.
1. Stocks rise after Fed decision
Global stocks and major Wall Street indexes gained after the Federal Reserve held its benchmark rate in the 3.75%-4.00% range in a 10-2 vote. The Fed upgraded its assessment of the economy while saying inflation remained elevated. The Dow rose 0.19%, the S&P 500 gained 0.28% and the Nasdaq added 0.27%.
2. Oil gains on supply concerns
Oil prices rose after an attack on a refinery in Saudi Arabia renewed concerns about Middle East supply risks. Brent futures added 1% to settle at $115.32 a barrel, while U.S. crude rose 3% to $102.78.
3. Central banks in focus
New Zealand's central bank unexpectedly held rates at 2.75%, sending the kiwi down 1%, while the Bank of Canada raised rates. Markets were pricing an 85% likelihood of a 25-basis-point Fed rate hike in December, up from 78.3% on Tuesday. Traders were also watching for U.S. Personal Consumption Expenditures data due Thursday.
