US market opened flat on Wednesday, following a brief dip in a steady rally. Investors are waiting for new information from Federal Reserve officials about the future of interest rates.
In the early hours of trading, the Dow Jones Industrial Average rose 46.3 points, or 0.10%, reaching 46,649.32. The S&P 500 increased by 9.3 points, or 0.14%, to 6,723.87, and the Nasdaq Composite gained 64.0 points, or 0.28%, reaching 22,852.32.
With the US government shutdown delaying important economic reports, traders are looking to Federal Reserve officials’ statements for guidance.
While excitement about artificial intelligence has kept stock prices up despite the shutdown, the rise of gold prices above $4,000 an ounce shows that more people are seeking safe investments due to concerns about policy risks and the uncertain economy.
Federal Reserve officials are scheduled to speak at a series of public events and conferences throughout October, including at major conferences and forums in Washington, D.C., Minneapolis, Philadelphia, St. Louis, Boston, and New York. These remarks will give a better picture regarding the future Fed policy decisions.
Meanwhile, treasury yields went down on Wednesday as the government shutdown continued. Investors are waiting for signals on future interest rate decisions from Federal Reserve officials.
The yield on the 10-year Treasury note dropped by over 2 basis points, reaching 4.104%. Yields also fell on longer-term bonds, with the 30-year Treasury yield down by more than 2 basis points to 4.699%. The 2-year Treasury yield decreased slightly by less than a basis point to 3.564%.
A basis point is equal to 0.01%, and yields and prices move in opposite directions. Investors are keeping a close watch on the ongoing government shutdown, which has now lasted for two weeks, as lawmakers struggle to agree on a funding plan.