Stock market today: Wall Street rises ahead of highly anticipated Federal Reserve policy meeting

Wall Street drifted higher early Monday ahead of this week’s policy decision by the Federal Reserve.

Futures for the S&P 500 were 0.7% higher before the bell, while futures for the Dow Jones Industrial Average ticked up 0.2%.

Nasdaq futures jumped more than 1% after the exchange said a connectivity problem had caused some orders to be canceled. Nasdaq announced shortly after 7 a.m. Eastern time that the issue had been resolved after more than two hours of disruption.

Google parent company Alphabet climbed 5.5% before the bell on reports that the tech giant is in talks with Apple to license Gemini to the iPhone maker. Gemini is Alphabet’s package of generative AI programs.

Wall Street is coming off its second straight losing week after several reports showing that inflation, though broadly cooling, remains stubborn.

FILE – An NYSE sign is seen on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. (AP Photo/Seth Wenig, File)

Photo: ASSOCIATED PRESS/Seth Wenig

Inflation remains the big concern for Wall Street amid hopes for the Federal Reserve to start cutting interest rates. The Fed sharply raised interest rates starting in 2022 in an effort to tame inflation back to its 2% target. Inflation at the consumer level was as high as 9.1% in 2022.

A report on consumer prices last week showed inflation remains stubborn, ticking up to 3.2% in February from 3.1% in January. Another report on prices at the wholesale level also showed inflation remains hotter than Wall Street expected.

Other reports last week showed some softening in the economy, which bolstered hopes for a continued long-term easing of inflation.

A rally for stocks that started in October has essentially stalled this month as investors puzzle over the path ahead for inflation, the Fed and the economy.

Fed officials will give their latest forecasts for where they see interest rates heading this year on Wednesday, following their latest policy meeting. Traders are still leaning toward a rate cut in June, according to data from CME Group. The Fed’s main rate remains at its highest level since 2001.

In Europe at midday, Germany’s DAX added 0.3% and the FTSE 100 in London edged 0.2% higher as did the CAC 40 in Paris.

Chinese data for January-February were mixed, with property investment falling while other indicators showed improvement.

In Tokyo, the Nikkei 225 index jumped 2.7% to 39,740.44. Markets are awaiting a decision by the Bank of Japan on Tuesday on whether to raise its benchmark interest rate for the first time in 17 years. Since 2016, the rate has remained at minus 0.1%.

Signs that employers plan solid wage hikes appear to have swayed the central bank toward finally easing away from the massive monetary easing employed over many years to try to spur growth in a country where the population is quickly falling and aging.

Nissan Motor Co.’s shares jumped 4.1% and Honda Motor Co.’s shares were up 2.7% after the two automakers agreed on a strategic partnership in electric vehicles.

The Hang Seng in Hong Kong edged 0.1% higher to 16,737.12, and the Shanghai Composite index gained 1% to 3,084.93.

Shares in Dongfeng Motor Group surged 17% after reports that China plans new policies to further boost its fast-growing EV sector.

Elsewhere, Australia’s S&P/ASX 200 edged 0.1% higher to 7,675.80, and the Kospi in South Korea advanced 0.7%, to 2,685.84.

In India, the Sensex added 0.3% and in Bangkok the SET was up 0.1%.

In other trading, U.S. benchmark crude oil added 45 cents to $81.49 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gained 39 cents to $85.73 per barrel.

The U.S. dollar was unchanged at Japanese yen from 149.03 yen. The euro cost $1.0904, up from $1.0887.

On Friday, Wall Street closed out its second straight losing week, giving back some of the gains that helped push the stock market to an all-time high earlier in the week.

The S&P 500 fell 0.6% and the Dow Jones Industrial Average fell 0.5%. The Nasdaq composite ended 1% lower.

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