U.S. Stocks Wobble as Fed Rate Decision Looms, Buoyed by U.S.-China Trade Talk Hopes

U.S. stocks showed mixed performance ahead of the Federal Reserve’s interest rate decision, with New York Stock Exchange shares gaining support from news of a potential breakthrough in the U.S.-China trade dispute.

This month’s Fed meeting comes amid uncertainty that makes predicting the central bank’s monetary policy moves nearly impossible. The fog surrounding financial markets stems from changes to U.S. trade policies under President Donald Trump.

Widespread expectations suggest the Fed will keep interest rates unchanged at the meeting’s close on Wednesday, May 7. However, some anticipate no change this time but foresee a rate cut in July, driven by ongoing uncertainty, a gloomy U.S. economic outlook, and the administration’s persistent approach to trade issues.

Reports indicate the U.S. and China have agreed to resume trade talks this weekend. U.S. Treasury Secretary Scott Pisent and Trade Representative Gere will travel to Switzerland for negotiations with China on Saturday and Sunday, led by Chinese Vice Premier He Lifeng.