Rising oil prices and yields exert downward pressure on stocks ahead of FOMC, says Axel Rudolph, Senior Market Analyst at online trading platform IG.
Stocks slip for a second straight day
“The rising oil price, which has so far risen by more than 16% in less than a month, creates concerns that rates might have to remain higher for longer. US bond yields have shot up to levels last seen in September 2007 while the US dollar slips for a fourth straight session and stocks for a second day."
FOMC to hold rates steady but outlook is key
“All eyes are on Wednesday's Fed rate decision with the central bank expected to keep rates steady. Comments regarding its future policy path will be closely monitored, though. Another rate hike later this year isn't off the table given the higher oil price is likely to increase inflationary pressures."
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