Stocks rise ahead of Fed meeting

Stocks in the U.S. bucked a global market slump Thursday as investors look ahead to a crucial Federal Reserve meeting next week on interest rates.

Investors pushed major U.S. indexes lower in the morning after drops in Asia and Europe, then reversed course as oil prices rose. That helped send shares of energy companies, which have been battered in recent weeks, higher.

Traders remain focused on a two-day meeting of Federal Reserve policymakers next week. They are trying to anticipate when and how quickly the central bank will begin to raise interest rates from their historically low levels. Those low rates have been a key factor sending stock prices higher over the last seven years.

A report Thursday showing a decline in applications for unemployment claims was the latest bullish sign on the jobs market, which could prompt the Fed to tighten credit. Some say worries about higher rates are overblown.

“The U.S. economy is in significantly better shape than in the past,” said Mike Ryan, chief investment strategist at UBS Wealth Management Americas. “We’re not dependent on Fed largess and stimulus to support growth.”

The Dow Jones industrial average rose 76.83 points, or 0.5%, to close at 16,330.40. The Standard & Poor’s 500 index gained 10.25 points, or 0.5%, to 1,952.29. The Nasdaq composite climbed 39.72 points, or 0.8%, to 4,796.25.

Apple jumped $2.42, or 2.2%, to $112.57, on Thursday, a day after the it introduced the updated iPhone, Apple TV and iPad. Tech stocks rose 1% overall, the biggest gain among the 10 industry sectors of the S&P 500.

Krispy Kreme Doughnuts plunged $2.08, or 12%, to $15.65 after the company lowered its outlook following disappointing second-quarter results.

Lululemon Athletica sank $10.51, or 16%, to $53.54 after the high-end apparel maker predicted profits for the current quarter that were lower than Wall Street analysts were expecting.

U.S. crude rose $1.77 to close at $45.92 a barrel in New York. Over the last four weeks, U.S. gasoline demand averaged 9.3 million barrels a day, up 3.8% compared with the same period last year, according to the Energy Department’s weekly petroleum status report.