Financial Market Review for December 13 2017 In the US Equity market, The S&P 500 and the Dow closed at records for a fourth session in a row Tuesday as the Federal Reserve kicks off its two-day meeting, but the NASDAQ was down not following the other indices trend. The central bank’s Federal Open Market Committee is widely expected to announce its third and final interest-rate hike of 2017 on Wednesday, but investors want to see what the policy-making body signals about 2018. The S&P 500 , +0.15% rose 4.12 points, or 0.2%, to 2,664.11. Telecoms and financials led the gains, while utilities and energy shares lagged behind. The Dow Jones Industrial Average , +0.49% advanced 118.77 points, or 0.5%, to 24,504.80. The Nasdaq Composite COMP, -0.19% slid 12.76 points, or 0.2%, to 6,862.32 as semiconductor stocks posted losses. The three equity gauges have scored strong gains in 2017, helped by factors such as an expanding U.S. economy, rising corporate profits, anemic expected returns for other assets and bets that the Trump administration will deliver tax cuts and other business-friendly policies. The Fed’s policy makers started their meeting Tuesday and will announce their interest-rate decision at 2 p.m. Eastern time on Wednesday. The announcement will be followed by departing Fed chief Janet Yellen’s last news conference in that role. The Federal Reserve is widely expected to raise interest rates on Wednesday, but, more significantly, it may give its strongest hint yet on how the Trump administration’s tax overhaul could affect the U.S. economy. Investors will pay close attention to how the central bank aims to balance a stimulus-fueled economic boost with the ongoing weak inflation and tepid wage growth that has curbed some policymakers’ appetite for higher rates. The Fed’s policy statement and its latest economic projections are due to be released at 2 p.m. EST (1900 GMT) following the end of a two-day meeting. Fed Chair Janet Yellen is scheduled to hold a press conference half an hour later. It will be her last before her four-year term ends early next year. Her successor, Fed Governor Jerome Powell, said at his recent confirmation hearing before a Senate panel that he had “no sense of an overheating economy,” an early signal he may not want to quicken the pace of rate increases until there is evidence of an acceleration in wage growth and inflation. The Fed has increased rates twice in 2017 and is currently expected to push through three more hikes next year. There are also signs inflation may be firming after a lengthy bout of weakness. Fed policymakers have been stymied at how price rises have remained persistently below the central bank’s 2 percent target despite labor market strength and a growing economy. The Bank of England and the European Central Bank will also meet this week and are expected to hold rates steady.
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