Level 1 - Absolute Beginner
The stock market is busy this week. Many big companies share their results. The Federal Reserve will also make a big choice on Wednesday.
On Monday, the S&P 500 went up. The Nasdaq went up too. On Tuesday, stocks opened higher.
Most experts think the Fed will not change interest rates. Microsoft and Alphabet share their results on Wednesday. Amazon shares its results on Thursday.
- stock
- A small part of a company that you can buy.
- market
- A place where people buy and sell.
- Fed
- The central bank of the United States.
- rate
- A price you pay to borrow money.
- result
- The number a company reports.
- busy
- Having a lot to do.
- expert
- A person who knows a lot.
- choice
- A decision.
Level 2 - Elementary
Wall Street is waiting for the Federal Reserve. The central bank ends its meeting on Wednesday at 2 p.m. Eastern time. Traders think there is about a 91 percent chance that it will keep rates between 3.75 and 4.00 percent.
On Monday the Dow rose 0.28 percent to 52,361.58. The S&P 500 gained 0.7 percent to 7,676.77, and the Nasdaq climbed 0.82 percent to 26,169.38. On Tuesday stocks opened higher, with the S&P 500 near 7,685.
It is a big week for company news. SoFi shares jumped after it raised its forecast. Coca-Cola raised its outlook too, but said demand in North America is slowing. Microsoft and Alphabet report on Wednesday after the market closes, and Amazon follows on Thursday.
- Wall Street
- The American financial world.
- trader
- A person who buys and sells stocks.
- forecast
- A guess about the future.
- outlook
- Expected future results.
- demand
- How much people want to buy.
- close
- To end the trading day.
- central bank
- The bank that controls a country's money policy.
- gain
- To go up.
Level 3 - Intermediate
Wall Street spent Tuesday positioning for a crowded Wednesday, when the Federal Reserve announces its policy decision at 2 p.m. Eastern time. Futures imply roughly a 91 percent probability that the central bank holds its benchmark range at 3.75 to 4.00 percent, and several economists expect what they call a hawkish pause: no move, but a warning that cuts are not around the corner.
Monday's session set the tone. The Dow Jones Industrial Average added 146.42 points, or 0.28 percent, to 52,361.58, the S&P 500 rose 0.7 percent to 7,676.77, and the Nasdaq advanced 0.82 percent to 26,169.38 as excitement over Anthropic's public IPO filing lifted technology shares. On Tuesday the S&P 500 opened near 7,685 with the Dow slightly lower.
Earnings added colour. SoFi surged after posting better than expected results and lifting its guidance, while Coca-Cola raised its profit outlook even as it reported softer demand in North America. Investors now face the Fed and then Microsoft and Alphabet after Wednesday's close, with Amazon due on Thursday, all while oil prices and the November 3 midterms hang over sentiment.
- benchmark
- A standard used for comparison.
- hawkish
- Favouring higher interest rates to fight inflation.
- guidance
- A company's own forecast of future results.
- sentiment
- The general mood of investors.
- futures
- Contracts that reflect expected future prices.
- session
- One trading day.
- surge
- To rise sharply.
- probability
- How likely something is.
Level 4 - Advanced
American equities idled in anticipation on Tuesday, with investors weighing a Federal Reserve verdict due at 2 p.m. Eastern time on Wednesday. Futures price a hold at 3.75 to 4.00 percent at roughly 91 percent odds, and the consensus among economists is for a hawkish pause, in which policymakers leave rates untouched while signalling reluctance to ease prematurely.
The backdrop is constructive but jittery. On Monday the Dow added 146.42 points to 52,361.58, the S&P 500 gained 0.7 percent to 7,676.77 and the Nasdaq rallied 0.82 percent to 26,169.38, buoyed by enthusiasm for Anthropic's public IPO filing, which revived the artificial intelligence trade. Tuesday's open found the S&P 500 near 7,685 and the Dow marginally softer.
Corporate results supplied cross-currents. SoFi soared after beating estimates and raising guidance, whereas Coca-Cola lifted its earnings outlook but conceded that North American demand is decelerating. The heavyweight test arrives after Wednesday's closing bell, when Microsoft and Alphabet report, followed by Amazon on Thursday, with elevated oil prices and the November 3 midterms adding a layer of geopolitical and political uncertainty.
- equities
- Shares of companies.
- consensus
- General agreement.
- ease
- To loosen monetary policy.
- buoyed
- Lifted or supported.
- cross-currents
- Conflicting influences.
- decelerating
- Slowing down.
- prematurely
- Too early.
- backdrop
- The general setting of events.
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