After a gloomy start on Monday, stocks traded silently higher on Wednesday
The U.S. stock market closed slightly higher on Wednesday, September 17 with the Dow Jones Industrial Average reaching a record high. However, the markets’ downward trend on Monday, September 15, were primarily due to the loss related to technology and small-cap stocks, as investors continued to dispense them ahead of the Federal Open Market Committee meeting (FOMC). The speculations around the central bank’s presumed ‘hawkish tone’ in its statement at the two-day long meeting ending Wednesday, had taken a toll on the stock prices since the beginning of September.
The upcoming meeting is expected to dominate the financial markets this week
The market is expecting the Federal Reserve to announce changes on forward guidance as it gets ready to end its asset-purchase program. The two-day Federal Open Market Committee (FOMC) meeting concludes Wednesday and the economists are expecting the Fed to announce an additional sum of $10 billion reduction in its asset-purchase program to $10 billion in U.S. Treasurys and $5 billion in mortgage-backed securities, based on the momentum set in the beginning of the year.