U.S. stocks were relatively unchanged as investors await the Federal Reserve’s announcement on interest rates and its latest economic forecasts.
The Dow Jones Industrial Average rose by 23 points, or 0.1%, while the S&P 500 and NASDAQ Composite both rose by 0.2%.
The Federal Reserve is trying to strike a balance between fighting inflation and stabilizing the banking system. Earlier this year, two banks failed and a Swiss bank was rescued by UBS.
Most futures traders expect the Federal Reserve to raise interest rates by a quarter of a point later today. Before the banking crisis, there were expectations for a half-point hike. Rapid interest rate increases over the last year have been blamed for putting pressure on banks with losses on their bond holdings.
First Republic Bank (NYSE: FRC) shares rose by 2.6% today. Banks such as JPMorgan Chase (NYSE: JPM) are looking into ways to inject more money into the bank, which has recently hired advisors to explore strategic options.
The Federal Reserve will announce its decision at 2:00 p.m. Eastern Time, and Chair Jerome Powell will hold a press conference at 2:30 p.m.
The shares of Virgin Orbit Holdings Inc. (NASDAQ: VORB) increased by 47% after a Reuters report stated that the company is close to receiving a $200 million investment from Texas-based venture capital investor Matthew Brown.
After GameStop Corporation (NYSE:GME) reported a surprise profit for the fourth quarter, its shares rose by 45%.
Oil prices increased slightly, with WTI Crude Oil Futures rising 0.3% to $69.94 a barrel, and Brent Oil Futures increasing 0.5% to $75.71 a barrel. Gold Futures also rose 0.3%, to $1,947.