While investors, traders, and forecasters may be on the fence as to whether the Fed pulls the trigger today on the first US interest rate hike in nearly a decade, Wall Street’s “smart money” is decisive on one thing: Market volatility will linger.

Wall Street’s fixation with oil prices left stocks little changed today, although investors managed to react stoically to the government’s report of a drop in crude inventories.

Wall Street slipped lower but still held on to most of its recent gains today as investors, their confidence in the economy growing, reacted calmly to oil prices that approached US$60 (€49.36) per barrel.

Confident US investors, buoyed by positive earnings reports from the financial sector and bullish corporate outlooks for 2005, returned to the market today after weeks of uncertainty, pushing stocks sharply higher.

US investors intent on collecting profits from Friday’s big gains looked past a series of positive earnings reports today and sent blue chip stocks moderately lower. The falling dollar and rising price of oil contributed to the selling.