US Stock Market Declines as Crypto-Bill Fails and Oil Prices Surge
The US stock market declined for the second consecutive trading day on September 15, Eastern Time. The Dow Jones Industrial Average fell 0.63% to 52,098.20, while the S&P 500 Index lost 0.45% to 7,585.73 and the Nasdaq Composite Index declined 0.78% to 25,981.57.
Crypto-concept stocks were significantly impacted by the weakening Bitcoin price and the U.S. Senate's failure to advance a cryptocurrency regulatory bill. Coinbase (COIN) dropped 10.1% and MicroStrategy (MSTR) fell 5.36%, as investors awaited the Federal Reserve's interest rate decision scheduled for Wednesday.
International oil prices continued to rise, with Brent crude (UKOIL) increasing by 1.88% to settle at $108.47, while WTI crude (USOIL) gained 3.54% to settle at $105.49. Saudi Arabia's Yanbu Red Sea export port suspended crude loading, and the country canceled some late-September crude cargoes for European customers.
The Federal Reserve is expected to raise interest rates by 25 basis points to 3.75%-4.00%, with market pricing indicating a 95% chance of this outcome. Morgan Stanley has shifted its interest rate forecast to a more hawkish stance, expecting two additional rate hikes in 2022.
The U.S. Senate failed to advance the Clarity Act, which aimed to establish a clearer regulatory framework for digital assets. The bill received only 50 votes in favor, falling short of the 60 votes needed to advance the legislation.