US stocks rise as investors wait for Fed policy meeting, low interest rates may be brought under control

U.S. equity futures were trading higher on Wednesday morning as investors await a Fed policy meeting later in the day where Fed governors could indicate when they will begin to curb rate policies. ultra-low interest.

The Fed could lay the groundwork for an announcement of a withdrawal in November, the first step towards unraveling the extraordinary support given to the economy since the pandemic struck 18 months ago.

Global investors are also anxiously watching Evergrande, one of China’s largest real estate developers, facing a possible default of tens of billions of dollars in debt, fueling fears of possible wider shockwaves for the system. financial.

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Chinese regulators have yet to say what they might do with the Evergrande group. Economists expect them to step in if Evergrande and lenders fail to agree on how to handle its debts. But any formal resolution is expected to result in losses for banks and bondholders. The company announced its intention to pay interest on Thursday.

“Although banks have yet to declare Evergrande in technical default, Beijing’s silence adds to market nervousness,” Mizuho Bank’s Venkateswaran Lavanya said in a comment.

U.S. equity futures rose on Wednesday morning as investors wait for a Fed policy meeting later in the day where Fed governors could signal when they will start to curb ultra-interest rate policies. low. (AP Photo / Richard Drew) (AP Photo / Richard Drew / AP Newsroom)

On Tuesday, nerves appeared to stabilize after a massive sell-off on Monday.

The S&P 500 lost 3.54 points to 4,354.19, while the Dow Jones Industrial Average lost 50.63 points to 33,919.84. The Nasdaq composite rose 0.2% to 14,746.49.

Smaller company stocks also managed gains. The Russell 2000 Index rose 0.2% to 2,186.18.

Supply chain issues, which have plagued a wide range of industries, have weighed on several companies. Homebuilder Lennar fell 0.5% after third-quarter home deliveries fell below analysts’ expectations due to supply chain issues.

In Asia, shares were mixed in Asia on Wednesday as investors awaited the Federal Reserve’s latest assessment of the US economy.

Tokyo fell, but other major regional benchmarks were mostly higher on Wednesday, reducing initial losses.

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The Bank of Japan kept its ultra-support monetary policy unchanged, as expected.

The Tokyo Nikkei 225 Index lost 0.5% to 29,690.31, while the Shanghai Composite Index gained 0.3% to 3,625.32. The Australian S & P / ASX 200 gained 0.6% to 7,319.40. Shares fell 2% in Taiwan and also fell in Singapore. But benchmarks have increased in India, Indonesia and Malaysia.

The markets in South Korea and Hong Kong were closed for holidays.

Universal Music jumped 35.7% when it debuted on the Amsterdam Stock Exchange.

In other exchanges, the US benchmark crude oil gained 92 cents to $ 71.41 per barrel in electronic trading on the New York Mercantile Exchange. He won 35 cents to $ 70.49 on Tuesday.

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Brent crude oil, the standard for international prices, added 93 cents to $ 75.29 a barrel.

The US dollar rose to 109.52 Japanese yen from 109.23 yen on Tuesday night. The euro was unchanged at $ 1.1726.