Dow surges 100 points as Fed’s decision awaited

US stocks rose on Wednesday as investors await another interest rate hike by the Fed as it fights inflation.

The Dow Jones Industrial Average gained 155 points, or 0.51%. The S&P 500 climbed 0.58%, and the Nasdaq Composite added 0.47%.

Short-term interest rates were surging in anticipation of the Fed’s next super-sized hike with the yield on the 2-year Treasury Wednesday morning topping 4% for the first time since 2007.

It is a sort of temporary calm before the storm, with limited bounce here ahead of the obviously extremely important Fed meeting, but very light volume. Things could develop rapidly for most financial assets, but the markets are witnessing some optimism ahead of the Fed’s decision.

The central bank on Wednesday is expected to deliver its third consecutive 0.75 percentage point rate hike. Investors will be monitoring the central bank’s longer-term projections, paying close attention to the terminal fed funds’ rate last projected in June to hit 3.8% in 2023.