US stocks traded quietly on Monday as investors awaited the Federal Reserve’s upcoming meeting on interest rates. The S&P 500 inched up by 0.1%, the Dow Jones Industrial Average rose by less than 0.1%, and the Nasdaq composite added less than 0.1% as well.
Energy producers, benefiting from the rise in oil prices, helped drive the market. Exxon Mobil gained 0.8%, while Marathon Petroleum rose 1.6%. However, Clorox shares dropped 2.4% following a cybersecurity attack that caused disruptions to its business. The company is still assessing the extent of the damage, but expects it to have a material impact on future results. Clorox reassured investors that the unauthorized activity has been contained.
With the Federal Reserve meeting taking place this week, traders are anticipating that interest rates will remain unchanged. However, they will be closely watching the forecasts that Fed officials will release regarding the direction of interest rates, the economy, and the job market in the coming years. Of particular interest will be how high the Fed officials expect the main interest rate to rise this year.
According to data from CME Group, traders are currently betting on a roughly 40% chance of a rate hike in either November or December. The market will be monitoring the Fed’s outlook to gain insights into the future direction of monetary policy.
– CME Group