1 min read.Updated: 22 Sep 2021, 07:42 PM ISTAgencies
Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, which helped calm fears of an imminent default that could unleash global financial chaos
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U.S. stocks traded higher on Wednesday as concerns over a default by China's Evergrande eased, with investors now awaiting policy cues from the Federal Reserve's meeting later in the day.
At 10:04 am ET, the Dow Jones Industrial Average rose 333.76 points, or 0.98%, to 34,253.60.
The S&P 500 rose by 34.21 points, or 0.079%, to 4,388.40. The Nasdaq Composite gained 81.38 points, or 0.55%, to 14,827.77.
Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, which helped calm fears of an imminent default that could unleash global financial chaos.
The S&P 500 has fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations.
Uncertainty over U.S. fiscal spending and a potential hike in corporate taxes have also chipped away at stocks this month.
Focus now turns to the Fed's decision, due at 2 p.m. ET (1800 GMT) where the bank could possibly unveil plans to begin scaling back its massive coronavirus-related stimulus measures.
Positive readings on retail sales and factory activity this month had strengthened expectations for a taper announcement from the central bank by as soon as September.