US stocks rally ahead of Fed meeting
Wall Street stocks rallied on Monday, ahead of an interest rate decision by the US central bank and as investors weigh the risk of a regional conflict in the Middle East. The Dow Jones Industrial Average surged 1.6 percent to end the day at 32,928.96. The broad-based S&P 500 bounced 1.2 percent to 4,166.82, and the tech-heavy Nasdaq Composite Index was up 1.2 percent too at 12,789.48. "US stocks are rallying as widening war fears eased a bit and after strong earnings from McDonald's," said Edward Moya of the OANDA trading platform in a note. The fast food giant topped earnings expectations, with its shares edging up 1.7 percent on Monday. Meanwhile, the dollar and oil prices were lower, and "even though the war extended between Israel and Gaza, it hasn't spread to other countries," said Peter Cardillo of Spartan Capital. The combination of these factors could be the reason why markets were higher, he added. Hamas gunmen stormed from Gaza into Israel on October 7 and carried out the deadliest attack since the country was created in 1948. In retaliation, Israel announced it would destroy Hamas and began a relentless bombardment of the Gaza Strip. Its intensifying military operations have sharply heightened fears for the 2.4 million inhabitants of Gaza, and thousands of civilians have been killed on both sides in the conflict. Analysts are also closely watching the Federal Reserve's rate decision this week, with an expectation that the Fed would hold off a further hike at the end of policymakers' two-day meeting on Wednesday. A wave of strikes that disrupted the "Big Three" automakers for six weeks also looked to be finally resolved, as the US auto workers union reached tentative agreement with holdout General Motors, adding to positive news. (AFP)