US markets jump marginally, European market closes slightly higher ahead of Fed's policy decision

The S&P 500 rose 0.2 per cent, the Nasdaq Composite also jumped 0.2%, while the Dow Jones Industrial Average moved up 0.06 per cent.

Following in the US markets, European markets also closed higher on Wednesday as investors there too eagerly await the Fed results. Photo: Reuters

Jus as investors are looking froward to the Federal Raserve's policy decision, the markets in the US and Europe rose slightly highly.

The S&P 500 rose 0.2 per cent, the Nasdaq Composite also jumped 0.2%, while the Dow Jones Industrial Average moved up 0.06 per cent.

The SPDR S&P Regional Banking ETF (KRE) jumped 1.5 per cent after falling above 6% on Tuesday. Among other biggest gainers, PacWest shares soared 5.2 per cent after sliding 28 per cent a day before. Western Alliance shares were also up 2.8%.

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The Fed is scheduled to release its policy announcement at 2 p.m. ET. Fed chair Jerome Powell is also scheduled to hold a press briefing at 2:30 p.m. ET.

Following in the US markets, European markets also closed higher on Wednesday as investors there too eagerly await the Fed results.

The pan-European Stoxx 600 index provisionally ended up 0.3 per cent. The benchmark index had fallen 1.2 per cent on Tuesday to its lowest level in about a month.

CME Group’s FedWatch tool data indicates that traders are saying that there is 86 per cent chances of the Fed rising rates by 25 basis points. Wall Street is also waiting whether the Fed will continue its hiking rates, or puts a brake.
The market went through a rough session on Tuesday as the Dow, S&P 500, and Nasdaq all fell more than 1 per cent. The markets showed the repurcussions of the disturbances in the regional banking sector after First Republic Bank collapsed and JPMorgan purchased it.

However, what can be a positive news for markets is ADP, a payroll processing company, on Wednesday filed private payrolls data for the United States, which showed that hiring at private companies soared in April by more than 100 per cent of what economists had expected. The numbers indicate that the US labour market remains active despite the Fed’s attempts to cool hiring.

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