Anna Hirtenstein and Gunjan Banerji
Stocks opened sharply higher and government bonds rallied ahead of the Federal Reserve's interest-rate decision.
Investors expect the Fed to keep policy on hold, but are on the lookout for signals that confirm a widely projected September rate cut. Earlier Wednesday, the Bank of Japan raised rates and put forward a plan to reduce bond buying, lifting the yen. The Fed's policy decision is due at 2 p.m. ET.
The tech trade is staging a rebound in early trading, chip shares rallying after strong earnings from AMD and a report that some U.S. allies could be exempted from curbs on selling semiconductor equipment to China. Investors will eye Meta Platforms' earnings after the close.
In recent trading:
-- Major indexes rose. The tech-heavy Nasdaq outperformed, adding 1.8%. The S&P 500 and Dow posted smaller gains.
-- The yen surged, and yields on Japanese bonds climbed, lifting the two-year yield to multiyear highs.
-- European stocks traded higher, with semiconductor-equipment specialist ASML among the best performers.
-- Chinese stocks climbed, with Hong Kong's Hang Seng Index and the Shanghai Composite adding over 2%.
-- Oil prices rose after a Hamas political leader was killed in Iran and Israel launched an airstrike in Beirut, spurring concerns about supply disruptions. Brent and WTI crude futures climbed around 3%.
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July 31, 2024 09:48 ET (13:48 GMT)
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