Wall St update: Dow rises over 300 pts as Evergrande concerns ease; Fed in focus

This post was originally published on this site

U.S. stocks traded higher on Wednesday as concerns over a default by China’s Evergrande eased, with investors now awaiting policy cues from the Federal Reserve’s meeting later in the day.

At 10:04 am ET, the Dow Jones Industrial Average rose 333.76 points, or 0.98%, to 34,253.60.

The S&P 500 rose by 34.21 points, or 0.079%, to 4,388.40. The Nasdaq Composite gained 81.38 points, or 0.55%, to 14,827.77.

Evergrande’s main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, which helped calm fears of an imminent default that could unleash global financial chaos.

The S&P 500 has fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations.

Uncertainty over U.S. fiscal spending and a potential hike in corporate taxes have also chipped away at stocks this month.

Focus now turns to the Fed’s decision, due at 2 p.m. ET (1800 GMT) where the bank could possibly unveil plans to begin scaling back its massive coronavirus-related stimulus measures.

Positive readings on retail sales and factory activity this month had strengthened expectations for a taper announcement from the central bank by as soon as September.

But weakness in the stock market had analysts questioning whether the Fed would risk further volatility, given that any concrete announcement on tapering would likely trigger more stock selling.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!