Wall Street set to open higher after closing down last week

Mon Sep 21, 2015 9:11am EDT
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By Tanya Agrawal

(Reuters) - Wall Street looked set to open higher on Monday following big losses at the end of last week as investors continued to assess the significance of the Federal Reserve's decision to keep interest rates near zero.

Investors will be looking for more clarity on the Fed's decision this week, when a number of central bank officials including Chair Janet Yellen, appear in public.

Federal Reserve Bank of Atlanta President Dennis Lockhart, a voting member of the Fed's policy-making committee, speaks on Monday.

"We had a pretty dramatic selloff on Friday and it's normal to see some gains after that," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.

Friday's selloff was exacerbated by "quadruple-witching", when options on stocks and indexes, and futures on indexes and single-stocks all expire.

"I think we might see some volatility this week as investors peruse statements from the Fed officials as they look for more clarity and signals," Frederick said.

Investors are now focusing on the next Fed meeting on Oct. 27-28, though a growing number of economists now wonder whether the Fed will raise rates at all this year.

St. Louis Fed President James Bullard told CNBC on Monday there is a powerful case to be made for a rate hike, which he said could come in October. Bullard is a non-voting member of the Fed.   Continued...

Traders work on the floor of the New York Stock Exchange August 25, 2015.  REUTERS/Brendan McDermid