US stocks rise on the eve of the Federal Reserve meeting

US stocks rose in trading on the first day of the week, with the Dow Jones index adding 150 points, while investors’ eyes are looking to the Federal Reserve meetings, scheduled to be held over the course of Tuesday and Wednesday, to know interest rate trends, in the last meetings of the year.

By the end of trading on Monday, the rise in the most famous index in the world represented 0.43%, and the broader S&P 500 index rose by 0.39%, while the rise in the Nasdaq index did not exceed one-fifth of a percentage point.

The Dow Jones Industrial Average ended today’s trading at its highest close since January 2022, while the S&P 500 index ended today at its highest close since March 2022.

Today’s rises come after the S&P 500 and Nasdaq indexes achieved their sixth consecutive weekly gains. This week, US stock investors are looking forward to key inflation data, which may influence market movements, and may have a role in the Federal Reserve’s decisions in the coming year.

In Europe, stocks rose at the beginning of an eventful week as investors awaited key inflation data in the United States and decisions of the world’s major central banks regarding interest rates, while the decline in metal prices led to a decline in mining company shares.

The STOXX 600 index of European stocks rose 0.4%, remaining at its highest level in 22 months.

The index has risen 11.6% so far this year, supported mainly by bets on lowering interest rates, amid signs of slowing inflation and the possibility of the euro zone economy being exposed to a slight recession.

Goldman Sachs raised its forecast for the STOXX 600 index for the year 2024 to 500 points, which implies gains of approximately 6% by the end of the year, against the backdrop of expectations of lower interest rates.

The US inflation reports and the decisions of the Federal Reserve (the US Central Bank), the Bank of England (the Central Bank) and the European Central Bank, which will be issued this week regarding interest rates, are important in assessing the increased expectations of market participants regarding easing monetary policy globally.

The Polish index rose 0.3% after Prime Minister Mateusz Morawiecki lost a vote of confidence, paving the way for a coalition government of pro-European Union parties led by Donald Tusk to take power.

Mining company shares fell 0.9%, leading the sector’s losses on the index, with the prices of most metals declining as a result of the rise in the dollar.

In energy markets, oil prices recorded a slight increase at settlement on Monday, with continued concerns regarding excess crude supply despite OPEC+ cuts and a decline in fuel demand next year.

Brent crude futures rose 19 cents, or 0.3%, at settlement to $76.03 per barrel, while US West Texas Intermediate crude futures rose nine cents, or 0.1%, to $71.32.

The two crudes jumped by more than 2% on Friday, but fell for the seventh week in a row, the longest period of weekly decline since 2018, with continued concerns about a supply glut.

Although the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or the group known as OPEC+, pledged to cut production by 2.2 million barrels per day in the first quarter of the year, investors remain skeptical that supplies will decline, as production growth is expected to… Non-OPEC countries face a supply glut.