Uber Launches Robotaxis, S&P 500 rises before FOMC

The S&P 500 edged higher on Tuesday as oil prices pulled back slightly ahead of the Federal Reserve decision. Delta Air Lines jumped after raising guidance, while Uber gained on plans to launch robotaxis. The FTSE 100 also moved higher, supported by BP and Shell as crude held near $100. The dollar weakened slightly on Wednesday, with sterling firming, while gold held steady as investors awaited central bank signals.

Equities

The FTSE 100 closed 0.83% higher on Tuesday, marking its strongest daily gain in a week, as energy and banking stocks lifted the index. The FTSE 250 also rose 0.72%, ending a four-session losing streak.

Gains came as oil prices remained elevated due to the ongoing Middle East conflict and continued disruption around the Strait of Hormuz. Investors are now focused on the Bank of England’s upcoming rate decision, with markets assigning roughly a 50% chance of a rate increase in November.

BP and Shell both closed nearly 2% higher on Tuesday, supported by higher crude prices as the conflict showed no sign of easing. The energy sector overall rose 1.82% to a record level.

Banking stocks also provided strong support, with the sector up 1.3% by the close. In the mid-cap space, Trustpilot surged 32% on Tuesday after reporting that its annual profit had quadrupled, a sharp move driven by improved financial performance and investor confidence in its growth outlook. By contrast, Close Brothers fell 3.5% after announcing plans to cut 600 jobs by 2027, reflecting cost pressures and restructuring efforts. Retail stocks were weaker, with the sector down 0.28%.

In the US, markets also ended higher on Tuesday. The S&P 500 closed up 0.25%, the Nasdaq rose 0.47%, and the Dow Jones Industrial Average gained 0.10%, as investors turned their attention to the Federal Reserve’s policy meeting.

Travel-related stocks led gains. Delta Air Lines closed more than 6% higher, while American Airlines rose 3.5% and United Airlines added 3.2% after all three companies raised revenue guidance for the current quarter. Expedia climbed over 4%, and Norwegian Cruise Line rose more than 2%, reflecting renewed optimism in the travel sector.

Financial stocks rebounded after recent losses, with Blackstone rising 4.6%, Apollo Global gaining 5.3%, and KKR up 3.3% by the close.

Uber jumped 4.2% after announcing plans to launch robotaxis in 28 cities using Nvidia software. In contrast, Eli Lilly fell nearly 6% after a downgrade from HSBC.

Forex & Commodities

The US dollar moved lower early on Wednesday, extending a three-day decline as oil prices eased slightly. It weakened against the yen to 158.6 and slipped against the euro, which rose to 1.154.

Sterling also strengthened, with the pound trading at 1.337 in early London dealings. Commodity-linked currencies showed some recovery, with the Australian dollar rising to 0.7117 and the New Zealand dollar reaching 0.5868. Despite this softer tone, the dollar remains close to levels seen late last week during heightened geopolitical tension.

Gold prices were steady early on Wednesday as investors held back ahead of central bank decisions. Spot gold edged up to 5009 per ounce, with attention firmly on the US Federal Reserve’s policy announcement later in the day.

Markets are also watching decisions from the Bank of England, European Central Bank and Bank of Japan this week, all of which are expected to leave rates unchanged while assessing inflation risks linked to energy prices.

Oil prices fell early on Wednesday after Iraq and Kurdish authorities agreed to resume exports through Turkey’s Ceyhan port. Brent crude declined to 101.2 per barrel, while US West Texas Intermediate dropped to 93.22. The pullback followed gains earlier in the week, with prices still holding above 100 per barrel after several sessions due to continued disruption linked to the Middle East conflict.