watch now The Federal Reserve is expected to raise interest rates Wednesday by a quarter point, but it also faces the tough task of reassuring markets it can stem a worse banking crisis. Economists mostly expect the Fed will increase its fed funds target rate range to 4.75% to 5% on Wednesday afternoon, though some expect the central bank could pause its hiking due to concerns about the banking system. Futures markets were pricing in a roughly 80% chance for a rate rise, as of Tuesday...

watch now Plummeting bond yields, steep drops in oil and stock prices, and a sharp jump in volatility are all signaling that investors fear a recession is now on the near horizon. Stocks were down Wednesday, as worries about Credit Suisse spooked markets already concerned about U.S. regional banks following the shutdown of Silicon Valley Bank and Signature Bank. “What you’re really seeing is a significant tightening of financial conditions. What the markets are saying is this increases risks...

Major banks kick off the earnings season in the week ahead, but it may be news on inflation that drives markets after hopes for a slowing trend triggered a major stock rally Friday. Stocks closed out the first week of the year with gains, boosted into the green by Friday’s more than 2% jump in major indices. “Next week is all about inflation,” said Michael Arone, chief investment strategist at States Street Global Advisors. “I would expect another volatile week. It’ll be interesting in that...

The final trading week of the year is arriving with investors more concerned about defensive positioning than whether the stock market can muster a Santa Claus rally. Stocks were mixed in the past week, with the S & P 500 down about 0.%2 and the Dow up 0.9%. The Nasdaq Composite’s losses were greater, nearly 2%, with the technology sector helping to lead the losers with a roughly 2% decline. The worst sector was consumer discretionary, while defensive groups such as health care, consumer...

Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a closed two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, November 2, 2022. Elizabeth Frantz | Reuters The Federal Reserve is expected to raise interest rates by a smaller half percentage point Wednesday yet signal that its battle with inflation is still far from over. The central bank is also slated to release new forecasts for interest rates and the economy when...