Dow Rises 100 Points Ahead Of Federal Reserve Decision

TOPLINE

The market opened slightly higher on Wednesday as investors closely watched for the Federal Reserve’s latest policy decision and a congressional hearing on antitrust in Big Tech later in the day.

KEY FACTS

Key background

Investors also continued to assess the latest coronavirus relief bill unveiled by Senate Republicans late on Monday, titled the Heath, Economic Assistance, Liability Protection and Schools (HEALS) Act. The GOP proposal for the next round of federal coronavirus aid includes a second round of $1,200 stimulus checks and more funds for small business loans in the Paycheck Protection Program. The bill would also eliminate the $600-per-week federal unemployment supplement, which states stopped paying out this week, to be replaced with a 70% wage-replacement program. 

What to watch for

The Federal Reserve will wrap up its two-day policy meeting on Wednesday: The last time Fed officials met in June, they decided to maintain the target range for the federal funds rate at 0% to 0.25%. On Tuesday, the central bank announced that it would extend loan programs through the end of 2020 as it continues to support the U.S. economy amid the pandemic. 

Further reading

Dow Falls 200 Points After Senate Republicans Unveil Coronavirus Relief Bill (Forbes)

Dow Falls Nearly 200 Points After China Retaliates By Ordering Shutdown Of Chengdu Consulate (Forbes)

Apple, Microsoft, Amazon, Google And Facebook Make Up A Record Chunk Of The S&P 500. Here’s Why That Might Be Dangerous (Forbes)

We Looked At How The Stock Market Performed Under Every U.S. President Since Truman — And The Results Will Surprise You (Forbes)

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