US: Stocks gain as market looks ahead to Fed
[NEW YORK] Wall Street stocks rose for the second straight day on Monday following better US retail sales data as markets awaited a Federal Reserve decision later this week.
US retail sales for February showed a 0.2 per cent increase from the previous month, less than the 0.7 per cent expected by analysts, but a step above January’s 1.2 per cent decline.
The data was good enough to keep alive the market’s momentum from Friday.
“We’ve priced in a lot of the concerns on the trade war,” said Art Hogan of B. Riley Wealth Management.
The Dow Jones Industrial Average finished up 0.9 per cent at 41,841.63.
The broad-based S&P 500 gained 0.6 per cent to 5,675.12, while the tech-rich Nasdaq Composite Index added 0.3 per cent at 17,808.66.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
US stocks have been in retreat in recent weeks as President Donald Trump has announced myriad trade actions, implementing some tariffs and delaying other levies in a process that has left markets guessing and generated talk of a possible recession.
Markets are looking ahead to Wednesday’s Fed decision.
While the central bank is widely expected to keep interest rates unchanged, Fed Chair Jerome Powell will likely be pressed on whether uncertainty over tariffs has dimmed the US economic outlook at all.
On Monday, the Organization for Economic Co-operation and Development trimmed its growth forecast for the United States, citing trade tensions and geopolitical uncertainties.
Among individual companies, PepsiCo rose 1.8 per cent after announcing it will acquire the low-sugar soda brand Poppi for about US$1.7 billion.
Intel jumped 6.8 per cent on optimism about the chip company’s prospects after it last week named tech industry veteran Lip-Bu Tan as its new chief executive. AFP
Share with us your feedback on BT's products and services
