S&P 500, Nasdaq advance as oil eases ahead of Fed decision

What happened

The S&P 500 and Nasdaq rose as easing oil prices supported risk appetite before the Federal Reserve's policy decision. The S&P 500 gained 12.45 points to 7,689.22, and the Nasdaq rose 98.08 points to 26,267.46, while the Dow fell 73.92 points to 52,287.66.

Confirmed

Global impact / market context

Lower oil prices can reduce costs for companies and leave households with more cash to spend, which supports stock prices. The Fed meeting matters because interest rates set borrowing costs across the economy, and investors expect rates to stay high, which can pressure company profits.

Analyst inference

Tech stocks led gains while energy lagged, showing investors favoring growth companies over oil producers as crude eased. Tesla and chip stocks rose, while Sherwin-Williams fell after a profit miss. Markets expect at least two more rate hikes by mid-2027.

Analyst inference

What to watch

1. The Fed is widely expected to hold rates steady on Wednesday after raising them last month, so its statement and any guidance on future moves will shape borrowing costs for companies and households. Confirmed
2. Watch whether oil prices keep easing, since cheaper crude could lower transport and manufacturing costs, supporting profit per sale at companies while weighing on energy producers' revenue. Proposed
3. Watch chip stocks, which rose 1.8% for a third straight day, and neocloud firms CoreWeave and Nebius, because sustained gains would signal investors are repositioning toward technology and computing demand. Analyst inference

Evidence

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