The stock market opened slightly higher on Wednesday as investors waited for updates from the Federal Reserve, which will unveil its latest decision on monetary policy and quarterly economic forecasts later in the day.
The Dow Jones Industrial Average was up 0.4%, around 100 points, on Wednesday, while the S&P 500 rose 0.2% and the tech-heavy Nasdaq Composite was flat.
The Federal Reserve is wrapping up its two-day policy meeting, the first since Chairman Jerome Powell announced a new inflation policy that will keep interest rates lower for a longer period of time.
Investors widely expect the Fed to maintain its cautious stance on the economic recovery and will be closely watching for quarterly updates on GDP, unemployment and inflation.
Better-than-expected earnings from FedEx, which has seen surging sales amid the e-commerce boom, also helped lift market sentiment, with its stock rising nearly 8%.
Meanwhile, gains were kept in check by the release of disappointing U.S. retail sales, which rose 0.6% last month—lower than the 1.1% expected and the 1.2% jump in July.
Shares of Eastman Kodak soared over 70% after an independent review found that the company didn’t break any laws related to its disclosure of a $765 million loan from the U.S. government to pivot to drug production.
After rallying on recent announcements of deals with ESPN and Michael Jordan, shares of daily fantasy and sports betting company DraftKings rose another 9% on Wednesday after signing an exclusive partnership with the NFL’s New York Giants.
What To Watch For
Cloud-based data storage company Snowflake is poised to make its public debut o the New York Stock Exchange on Wednesday, under the ticker symbol “SNOW.” The company priced its IPO at $120 per share, above the original price range. With a valuation of $33.3 billion, Snowflake is on track for the largest software IPO ever.
The market has moved higher so far this week, on Tuesday posting its third straight day of gains in a row as technology stocks continued to rebound from last week’s sell-off. The S&P 500 fell 2.5% last week, its worst one-week drop since late June, while the Nasdaq fell more than 4% for its worst week since March. Amid the wider tech sell-off last week, the Nasdaq briefly entered correction territory on Tuesday, after falling 10% in just three days of trading.
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