DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

The S&P 500 edged higher Wednesday as investors awaited a pivotal Federal Reserve interest rate decision that could begin a new cycle of increases over the coming months. The broad market index gained 0.2%, while the Nasdaq Composite advanced 0.5%.

The Dow Jones Industrial Average moved in the opposite direction, shedding 101 points, or 0.2%. Earlier Wednesday morning, all three major averages had risen after the opening bell.

Futures markets assigned 92.9% odds to a 25 basis point increase Wednesday, according to the CME FedWatch tool. The odds of another 25 basis point move stood at 39.1% for October and 26.4% for December, while the current target range was 3.5% to 3.75%.

Brent Wilsey, chief investment officer of San Diego based Wilsey Asset Management, warned that leaving rates unchanged could carry damaging consequences. Investors were watching the decision amid pressure from the White House to keep rates where they were.

“That could surprise stocks, and surprises are rarely received well in markets, and it could also damage the Fed’s credibility, and reignite concerns that the central bank is caving to political pressure to keep rates steady,” Wilsey said.

Wilsey identified diesel prices as a major inflation problem because they can raise expenses across transportation, agriculture and shipping. U.S. diesel prices reached $6 per gallon Friday for the first time amid supply constraints attributed to the Ukraine and Iran wars.

Crude oil remained above $100 per barrel despite retreating from recent highs. Brent crude futures fell more than 1% to around $107 per barrel, while West Texas Intermediate futures declined 2% to roughly $103.

Treasury yields had also climbed as markets anticipated higher prices across the economy. The 10 year yield was last slightly below 5%, while the 30 year yield stood at 5.348%.

Earlier Wednesday, the benchmark 10 year yield eased about 2 basis points to 4.979% after reaching 5.039% Tuesday, its highest level since July 2007. The 30 year yield slipped about 1 basis point, while the 2 year yield hovered near 4.646%.

Consumers continued spending in August despite persistent inflation pressure. Retail sales climbed 1.2% for the month, reversing July’s 0.5% decline and beating the 0.8% Dow Jones consensus estimate.

Sales excluding auto related purchases rose 1.4%. The consumer price index increased 0.4% during the month, meaning the retail sales gain exceeded the reported rise in consumer prices.

Higher energy prices helped lift gas station sales by 3.1%. Online retailers gained 2.6%, electronics and appliance sales increased 1.6%, and miscellaneous stores posted a 1.9% rise.

Retail sales were 6% higher than during the same period one year earlier. Spending was particularly strong online and at bars and restaurants.

Goldman Sachs raised its Chevron price target to $240 from $225, implying 10.2% upside from Tuesday’s close. Goldman analyst Neil Mehta pointed to Chevron’s global expansion, international relationships, technology development and attention to costs and capital.

Costco and Uber announced a national expansion of their United States partnership, making Costco delivery through Uber Eats available in 47 states, up from 17. About 600 Costco locations were available through the platform, and customers could receive 30% off their first eligible Costco order.

Costco and Uber shares rose 0.25% and 0.45%, respectively, before the opening bell. Consumers could also buy Costco memberships through Uber Eats, while eligible Costco members could receive discounts on Uber One membership.

Intel climbed 5% and SK Hynix’s Nasdaq listed shares gained 3% following a Reuters report that the companies were discussing production of SK Hynix memory chips in the United States. SK Hynix said no decision had been made about a partnership.

Cryptocurrencies faced sharper pressure Tuesday after a Senate cloture vote on the Clarity Act failed. Bitcoin fell to $74,936.78, its lowest level since Aug. 21, while Ether reached $2,357.38 and Solana touched $95.784.

The average rate for a 30 year fixed mortgage reached 7.22%, according to Mortgage News Daily. The increase came as the benchmark 10 year Treasury yield moved above 5% and reached its highest point since 2007.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.