Markets ready for Dovish Statement from Fed

Markets are primed for a dovish statement from the Federal Reserve on Wednesday that should keep a lift in stocks.

The Dow and S&P 500 rallied to record highs Tuesday, as traders bet on an uneventful outcome when the Fed ends its two-day meeting Wednesday afternoon.

“They put the possibility of a surprise tapering at zero,” said Art Cashin, director of floor operations at UBS. He said there was some short-covering as traders assumed the Fed would not announce any reduction in its $85 billion monthly bond-buying program.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.