Major US stock indices closed in positive territory

Major US stock indexes rose slightly, as investors refrained from active purchases in anticipation of the announcement of the results of the two-day Fed meeting. Meanwhile, falling oil prices put pressure on energy stocks.

West Texas Intermediate (WTI) oil futures fell 6% after Reuters reported that oil production in Saudi Arabia could recover faster than originally anticipated. According to a senior Saudi source, production can be fully restored within two to three weeks, and the kingdom is close to recovering 70% of the 5.7 million barrels per day lost after the attacks.

The results of the September meeting of the Fed will be announced tomorrow at 18:00 GMT, after which Central Bank Chairman Jerome Powell will hold a press conference. Market participants expect interest rates to fall by 0.25 percentage points at the end of the current meeting, but they will carefully analyze the regulator’s statements, hoping to understand how recent events in Saudi Arabia and trade negotiations with China could affect future policies.

Meanwhile, the published data showed that US industrial production recovered sharply in August, which somewhat eased concerns about a slowdown in economic growth caused by weak production. According to the Fed, industrial production grew by 0.6%. This was the largest increase since August 2018, followed by a 0.1% drop in July. Industrial production rose 0.4% year on year in August.

Favorable data also came from the real estate market. The National Association of Home Builders (NAHB) released a report that reflected an unexpected improvement in the confidence of American homeowners in September. The report said the NAHB / Wells Fargo Housing Market Index rose in September to 68 points in September from a revised August value of 67 points. Economists had expected the index to remain unchanged from the initial August estimate of 66. As a result, the index reached its highest level since October 2018.

DOW components completed trading mixed (15 in the red, 15 in the red). Outsiders were shares of Dow Inc. (DOW; -2.24%). The biggest gainers were The Boeing Company (BA; + 1.34%).

Almost all S&P sectors recorded an increase. The conglomerate sector grew the most (+ 0.8%). Only the raw materials sector showed a decrease (-0.8%).

At the time of closing:

Dow 27,108.46 +31.64 + 0.12%

S&P 500 3,005.37  +7.41 + 0.25%

Nasdaq 100 8,186.02 +32.47 + 0.40%