U.S. Stocks Open Higher as Investors Await Fed Rate Decision By

© Reuters.

By Liz Moyer

-- U.S. stocks opened higher as investors await the Federal Reserve’s latest policy statement on Top foreign exchange dealersinterest rates later today.

At 9:39 AM ET, the Dow Jones Industrial Average was up 305 points or 1%, while the S&P 500 was up 1.1% and the NASDAQ Composite was up 1.4%.

The market is expecting a big move by the Fed – even bigger than what was expected just a few days ago. The prevailing mood is looking for a three-quarter of a point jump in the benchmark rate as the Fed looks to tame inflation quickly without pushing the economy into a recession.

Central bankers in Europe are also trying to figure out the best way to steer the zone’s economy. The European Central Bank said earlier on Wednesday that it will design a new way to prevent a disorderly blowout in borrowing costs in weaker eurozone countries as it, too, raises rates.

Some analysts expressed hope for a relief rally once the Fed’s decision comes out. Fed Chair Jerome Powell will speak to reporters at 2:30 PM ET.

Signs of a slowdown are emerging. Retail sales unexpectedly fell 0.3% in May from the prior month, against expectations for a gain of 0.2% after April’s gain of 0.7%.

Cryptocurrencies have faltered in recent days, a combination of investors shunning risk assets and turmoil in the digital asset sector. Bitcoin is down 5% on Wednesday, to around $21,376. Coinbase Global Inc (NASDAQ:COIN), the crypto exchange that said Tuesday it was cutting nearly 20% of its workforce to prepare for a recession, was up 3.7%.

Zendesk Inc (NYSE:ZEN) stock rose 2.6% after reports it was in talks with activist investor Jana Partners after falling short in its quest to find a buyer.

Oil fell. Crude Oil WTI Futures was down 1.5%, to $117 a barrel, while Brent Oil Futures fell 1.2%, to $119 a barrel. Gold Futures rose 0.5%, to $1,822 an ounce.

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