Gold Silver Reports – U.S. stocks edged higher in thin trading as oil rallied. The dollar slumped on positive trade news, while investors awaited the first rate decision under new Federal Reserve Chairman Jerome Powell.
Energy producers led gains in the major U.S. benchmarks, with trading 30 percent below the 30-day average as a snowstorm battered New York. The Russell 2000 Index was the exception, rallying as a near 3 percent gain in crude prices boosted energy producers in the small-cap gauge. Investors are turning their attention to Powell’s first Federal Open Market Committee meeting as Fed chairman this afternoon, with close scrutiny of whether monetary policy might become more hawkish under his tenure.
“Whether we have three or four rate hikes this year shouldn’t be that big of a difference to the economy, but it will have a big impact on market prices and market psychology,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.
An index tracking the dollar’s value against trading partners dropped the most in two weeks, with Canada’s dollar and Mexico’s peso surging after some concessions in trade talks.
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Elsewhere, the three-month dollar London interbank funding rate continued its advance, rising to 2.27 percent Wednesday, the highest since November 2008. Yields on U.K. 10-year government bonds extended their gain after data showed wages are rising in Britain at their fastest pace since the end of 2016.