Crude continued to set the tone on global financial markets, with U.S. stocks rallying virtually in lockstep with oil after data showed a drawdown at a key American supply hub. Treasuries fell and the dollar fluctuated before the Federal Reserve’s policy decision.

The Standard & Poor’s 500 Index advanced after falling as much as 0.9 percent, with energy shares leading gains as crude surged above $32 a barrel. Equities slid earlier after disappointing results from Apple Inc. and Boeing Co. signaled slowing global growth is weighing on corporate America. Data showed sales of new homes in the U.S. rose more than forecast in the last report on the economy before the Fed’s 2 p.m. decision in Washington.

The S&P 500 added 0.3 percent at 11:55 a.m. in New York, while the Nasdaq 100 Index lost 0.7 percent. The broader index is headed for a January loss of more than 6.5 percent, as anxiety about global growth, fueled by China’s slowdown and a rout in oil, has wiped as much as $2.4 trillion from the value of U.S. equities this year.

Energy shares jumped 1.4 percent on the oil rebound, while financial shares climbed 1 percent, adding to a rally on Tuesday.

Apple, the world’s most valuable company, was the biggest drag on both indexes. It dropped 5 percent after forecasting its first sales decline since 2003. Suppliers to Apple and the smartphone sector also retreated, with losses at ARM Holdings Plc, Dialog Semiconductor Plc and AMS AG.

Source : Bloomberg