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Dow rises in volatile trading ahead of the Fed’s next rate hike

The Dow rose marginally higher Monday in a volatile trading session ahead of the Federal Reserve’s two-day policy meeting that kicks off Tuesday, where the central bank is widely expected to hike rates by another 75 basis points.

The Dow Jones Industrial Average last traded 45 points higher, or 0.13%. The 30-stock index wavered on Monday between a loss of 263 points at its lows and a high of nearly 130 points. The S&P 500 and Nasdaq Composite traded marginally higher.

Yields pushed higher ahead of the Fed’s likely decision to raise its benchmark rate by another 75 basis points to snuff out inflation later this week, with the 10-year Treasury yield topping 3.51% and hitting its highest level in 11 years.

After some brief hope over the summer that the Fed may be done with its aggressive tightening campaign, investors have been dumping stocks again on fears the central bank will go too far and tip the economy into a recession.


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