US Stocks end in synchronized positive territories ahead of the ECB

  • The DJIA notched its sixth-straight gain, while the S&P 500 closed firmly higher for the fifth time in six sessions
  • All eyes now turn to the European Central Bank, (ECB). 

U.S. stocks ended higher on Wednesday, anticipating an easier money cycle in central bank policies ahead of Thursday's ECB. The DJIA notched its sixth-straight gain, while the S&P 500 closed firmly higher for the fifth time in six sessions while the Nasdaq broke up out of its three-day losing streak. The DJIA added 227.61 points, or 0.9%, to 27,137.04, ending above 27,000 for the first time since July while the S&P 500 index added 21.54 points, or 0.7%, to 3,000.93. The Nasdaq Composite index gained 85.52 points, or 1.1%, to 8,169.67.

US data

The US PPI lifted 0.1% m/m in August as the cost of services offset the drop in the price of goods. "Core PPI was up 1.8% in the 12 months to August. Despite this inflation measure coming in stronger than expected the Federal Reserve is still expected to cut interest rates next week – a decision the market has now fully priced in," explained analysts at ANZ Bank 

ECB outlook

Eyes now turn to the ECB. "The market is expecting a strong stimulatory package. Interest rates are expected to drop 10 to 20bp with market expectations weighted towards 10bp. QE worth 30 to 50 billion euros per month for the next 9-12 months is expected, along with a tiered deposit rate and dovish forward guidance," the analysts at ANZ Bank explained. 

DJIA levels

The DJIA has printed another higher high while climbing through the 26900s and falling just shy of the 27200s targets, and specifically, 27398 level. On the flip side, the 200-DMA is located at 25649 below the 21-DMA that sits just above the pivot. Further below lies the May and Jun lows in the 24700s as a double-bottom target. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading above 1.1050, in a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates but signal no further stimulus is on the cards.


GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.


USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.


Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Forex Today: Fed set to trigger high volatility, oil falls, altcoins advance

Tension is mounting ahead of the Federal Reserve decision later today. Economists expect a 25 basis point rate cut amid slowing global growth and investment. 

Read more