The US stock market continued to see some volatility as traders await the Federal Reserve’s meeting later today. The main indices could see limited movements during today’s trading session as caution could dominate.
Overall, the market remains below its previous peak although it has been able to recover since August.
Traders should turn their attention to Jerome Powell’s comments in addition to the central bank’s economic and interest rate forecasts.
While the Federal Reserve is expected to keep its interest rates unchanged today, some doubts remain regarding the next steps in monetary policy. A hawkish stance could weigh on expectations and drive the stock market to the downside.
At the same time, high oil prices could continue to put some pressure on some parts of the market as input and transport costs could be on the rise.
Crude could continue to climb as supply levels are expected to remain tight as Saudi Arabia and Russia maintain their production cuts. Expectations of a strong performance in oil markets could however boost energy stocks.