In 3.10pm trading in NY, the Dow Jones Industrial Average rose 0.2 per cent, while the Nasdaq Composite Index inched 0.01 per cent higher. It was the first time it has used that wording since late previous year, when it most recently raised rates.
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The Toronto stock market rose Monday, supported by a rally in oil prices, while its NY counterparts were in a wait-and-see mood ahead of this week’s highly-anticipated U.S. Federal Reserve meeting.
Oil rose 2 percent and was headed for its largest weekly gain in a month, after a surprisingly large drop in US crude inventories emboldened investors ahead of next week’s meeting between OPEC members and Russian Federation to discuss supply.
Analysts say the US Federal Reserve is all but certain to raise interest rates this week, and may avoid raising them altogether for the rest of the year.
The S&P/TSX Composite Index fell 0.3 percent to 14,759.69 at 10:25 a.m.in Toronto, paring a weekly gain to 2.2 percent.
Fed Chair Janet Yellen said on Wednesday that US growth was looking stronger and rate increases would be needed to keep the economy from overheating and fueling high inflation.
The energy group retreated 0.3 percent overall, with oil prices little changed as traders eyed talks next week among producers about possible coordination to prop up prices.
Eight of the index’s 10 main groups ended lower.
Murphy Oil jumped $1.07, or 4 percent, to $27.58, Transocean rose 38 cents, or 4 percent, to $9.52.
Baskin’s Schwartz said his clients were starting to fret about the USA election and what the possible outcomes might mean for Canadian investors.
Other commodities were also rising, which helped out materials stocks.
PULLED A RABBIT: Open source software company Red Hat rose $2.70, or 3.5 percent, to $79.74 after the company reported better than expected results in its second quarter.
Its shares rose 0.4 per cent to $22.81.
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US crude prices settled down 4 percent on signs Saudi Arabia and arch rival Iran were making little progress toward a preliminary agreement ahead of talks by major crude exporters next week aimed at freezing production.
