US market opens in green ahead of Fed policy outcome; oil and bond yields cool off

The US markets opened in green ahead of the crucial Federal Reserve policy announced scheduled later today. The Dow Jones opened 22-points higher on Wednesday as crude oil prices staged a pullback after rallying over 6% this week. The S&P 500 and the NASDAQ also rallied as much as 0.5% on Wednesday as Treasury yields also witnessed a pullback from two-decade high levels.

US bond yields cool off ahead of Fed outcome

The US 10Y yields fell below 5% mark on Wednesday ahead of Federal Reserve’s policy announcement later today. Markets are pricing in a 25-bps point rate hike by Kevin Warsh as inflation remains sticky at 3.4%. Meanwhile, investors will closely watch commentary by the Federal Reserve Chairman, to get cues for the interest rate trajectory.

At the stock specific level, the hyperscaler stocks relieved after Jensen Huang once again quashed the claims made by Anthropic and OpenAI CEOs on AI safety risks and called for pacing the development. Consequently, shares of Alphabet, Amazon, and Meta opened in green with gains of up to 1% on Wednesday.

On the other hand, chip makers like Micron, Nvidia, AMD, Intel Corporation and Cisco Systems soared as much as 3.6% on Wednesday as investors reassessed the risks associated with chip producers and hardware makers.

Intel and SK Hynix soar 5%

Shares of Intel Corporation and SK Hynix were among the top gainers on Wednesday after Reuters report indicated that the South Korean memory maker is in talks with Intel about an agreement to manufacture silicon wafers in the US. The memory chip maker said, that it is exploring various options to strengthen its global competitiveness, without any specific plans and no decisions are made regarding partnership with Intel as of now.

Meanwhile, Asian markets closed in green across the board as investors reconsidered the risks with tech stocks after a recent fall. The Nikkei closed 438 points or 0.6% higher, while Shanghai and Kospi rose over 1% on Wednesday. The European markets too cheered the pullback in crude oil prices as UK’s FTSE, Europe’s Euro Stoxx, Frace’s CAC 40 and Gernmany’s DAX surged as much as 0.4% on Wednesday.