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US markets closed higher ahead of Fed decision

21 Mar 2018 Evaluate

The US markets closed higher on Tuesday, led by strong gains in the energy sector as the overall market reclaimed some lost ground from the previous day, when tech shares fell sharply. Market participants are also anticipating the Federal Reserve’s two-day policy meeting, which started in the early afternoon. Investors are watching for signs that the central bank will take a more aggressive path toward normalizing monetary policy. The Fed, meanwhile, is expected to deliver an interest-rate hike on Wednesday, following the Federal Open Market Committee’s meeting. A faster pace of rate hikes can dent the attractiveness of assets perceived as riskier, such as stocks. Some investors are expecting the Fed’s economic projections, or the dot plot, will show more policy makers leaning toward a more aggressive four rate increases instead of the three forecast going into the year. The meeting will also see Jerome Powell preside over his first press conference of his tenure as Fed Chairman.

Meanwhile, US lawmakers neared agreement on a massive government spending bill that Congress hopes to pass by Friday, as congressional leaders worked to narrow their differences on thorny issues such as President Donald Trump’s border wall. Senate Majority Leader Mitch McConnell, a Republican, said he and his counterparts in the House of Representatives and Senate were moving to completing work on the $1.3 trillion spending bill that would significantly boost spending for the US military and an array of non-military programs.

The Dow Jones Industrial Average added 116.36 points or 0.47 percent to 24,727.27, the Nasdaq gained 20.058 points or 0.27 percent to 7,364.30, while the S&P 500 was up by 4.02 points or 0.15 percent to 2,716.94. 

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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