Dow rises 50 points ahead of Fed decision; Chips gain

The Dow Jones Industrial Average opened 50 points higher Wednesday as investors awaited the Federal Reserve’s policy decision. The S&P 500 rose 0.11% and the Nasdaq Composite gained 0.28% at the open.

The Fed’s announcement is scheduled for 2 p.m. Eastern Time and will be the first interest-rate decision under Chair Kevin Warsh, who is expected to hold a press conference afterward. Economists and traders generally expect the target federal funds rate to remain in the 3.50% to 3.75% range. CME Group’s FedWatch tool shows markets assign roughly a 43% probability of a quarter-point rate increase in December.

Investors awaited May retail sales data for additional information on consumer spending and the broader economy. Retail sales figures are viewed as one input on inflation and growth that could shape future Fed guidance.

Energy markets moved modestly higher after former President Donald Trump warned the United States would “go right back to dropping bombs” if he did not approve a final agreement with Iran. U.S. West Texas Intermediate crude rose nearly 1% to about $76 per barrel and Brent crude climbed close to 1% to roughly $79 per barrel. Earlier in the week crude had fallen after reports that Washington and Tehran were working toward an agreement that could extend a ceasefire and allow oil shipments through the Strait of Hormuz.

Semiconductor and technology stocks rose in premarket trading. Intel advanced about 2.3% after announcing it has begun production of an advanced 18A-P chip node. ASML gained roughly 6%, while Broadcom, Micron Technology and Advanced Micro Devices each rose between about 0.7% and 2.1%. The Invesco PHLX Semiconductor ETF increased about 0.67%.

SpaceX continued its post-IPO gains, rising about 1.96% after the company surpassed Amazon to become the world’s fifth-most valuable publicly traded company.

Global markets were mostly positive. Japan’s Nikkei 225 added 0.72% to reach a fresh record high, South Korea’s Kospi gained 1.58%, and Europe’s Stoxx 600 rose 0.3%.

Traders said attention will focus on the Fed statement and Warsh’s press conference for any changes in language on inflation, growth and the likely timing of future rate moves.