Wall Street Advances Amid Traders' Focus on Federal Reserve Policy

Market Update: March 17, 2024

Wall Street Rose Amid Travel Stock Rebound

The US stock market saw gains on Tuesday, driven by a rebound in travel stocks, including Delta Air Lines and American Airlines Group. Both airlines raised their revenue guidance for the current quarter, with Delta Air Lines rallying 6.9% and American Airlines Group climbing 3.4%.

The S&P 500 rose 0.43% to 6,727.91 points, while the Nasdaq gained 0.58% to 22,502.83 points. The Dow Jones Industrial Average was up 0.29% at 47,082.69 points.

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Financials Sector Index Gains 0.7%

The S&P 500 financials sector index rebounded from sharp losses in the previous week, gaining 0.7%. Asset managers Blackstone, Apollo Global, and KKR gained over 3%.

Rate Expectations Unchanged

The Federal Reserve began its two-day policy meeting on Tuesday, with traders expecting the Fed to keep borrowing costs unchanged in its decision on Wednesday. Rate futures suggest expectations of one 25-basis-point cut toward the end of the year, down from around two before the war.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Energy Prices Remain High

Concerns of prolonged supply disruptions due to the closure of the Strait of Hormuz shipping route have kept crude prices near $100 a barrel. Energy companies Occidental and ConocoPhillips rose more than 1% each, tracking higher crude prices.

Sector Performance

Nine of the 11 S&P 500 sector indexes rose, led by energy, up 1.43%, followed by a 0.92% gain in consumer discretionary.