US stocks witness big swings ahead of Fed meeting

U.S. stocks went through volatile trading amid rate hike concerns for the week, as investors eagerly awaited the Federal Reserve's policy meeting scheduled for Sept. 20-21.

On Monday, U.S. stocks pared early losses to end sharply higher, with all three indices jumping over 1.3 percent, as investors pondered over remarks by Fed officials.

On Tuesday, U.S. stocks closed down more than 1 percent, as investor sentiment was dampened by a sharp decline in oil prices.

On Wednesday, U.S. stocks closed mixed after wavering between gains and losses, as uncertainties about the timing of a next rate hike continued to weigh on the market.

On Thursday, U.S. stocks posted solid gains as Wall Street digested a slew of economic data.

On Friday, U.S. stocks fell after wavering in a tight range, as investors meditated on the key inflation data ahead of the Fed's policy meeting.

Financial markets have been choppy in recent sessions on contrasting remarks by Fed officials before the central bank's meeting next week.

Fed Governor Lael Brainard, a voting member of the central bank's policymaking committee, said in a speech in Chicago on Monday that while economic progress continues it would be wise for the Fed to keep monetary policy loose.

Atlanta Fed President Dennis Lockhart, however, said current economic conditions called for a "serious discussion" on rates at the September meeting.

Boston Fed President Eric Rosengren said in a speech last week that low interest rates are increasing the chance of overheating the U.S. economy. Gradually tightening monetary policy is appropriate to maintaining full employment, he added.

On the economic front, in the week ending Sept. 10, the advance figure for seasonally adjusted initial claims was 260,000, an increase of 1,000 from the previous week's unrevised level of 259,000.

The Producer Price Index for final demand was unchanged in August, seasonally adjusted, missing market expectations of a 0.1-percent gain.

The advance estimates of U.S. retail and food services sales for August were 456.3 billion U.S. dollars, a decrease of 0.3 percent from the previous month.

U.S. industrial production decreased 0.4 percent in August, after rising 0.6 percent in July, according to the Fed.

The Consumer Price Index (CPI) for all urban consumers increased 0.2 percent in August on a seasonally adjusted basis, beating market consensus of 0.1 percent.

For the week, the blue-chip Dow inched up 0.2 percent, and the broader S&P 500 added 0.5 percent, while the tech-heavy Nasdaq surged 2.3 percent.

Source : XINHUA