US: Stocks rise as oil prices fall ahead of Fed decision

[NEW YORK] Wall Street stocks climbed early on Tuesday (Mar 15) as markets weighed a retreat in oil prices against mixed economic data ahead of a key Federal Reserve decision.

Equities appeared set for more volatility as a surge in Covid-19 cases in China prompted fresh lockdowns in the world's second-biggest economy, denting oil demand and pushing crude prices below $100 a barrel.

Worries about surging crude prices in light of the Russian attack on Ukraine have added to headwinds facing stocks in recent weeks, stoking recession fears.

US producer price increases remained elevated in February but came in at 0.8 per cent, a bit below expectations. Still, the Fed is expected to begin a series of interest rate increases on Wednesday to curb inflation.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.5 per cent at 33,095.68.

The broad-based S&P 500 gained 0.4 per cent to 4,190.80, while the tech-rich Nasdaq Composite Index advanced 0.5 per cent to 12,644.44.

US air carriers were standouts in early trading on Tuesday, with American Airlines and Delta Airlines both up more than 5 per cent after lifting their revenue forecasts in light of recovering demand following the latest Covid-19 wave in the country. AFP