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Wall Street rises as Fed signals rate hike slowdown

Wall Street rises as Fed signals rate hike slowdown

  • Growth funds rise as Treasury yields fall
  • Tesla jumps as Citigroup updates
  • Nordstrom falls on lowered profit forecast
  • The Dow Jones Industrial Average closed at its highest level since April
  • Dow up 0.28%, S&P 500 up 0.59%, Nasdaq up 0.99%

Nov 23 (Reuters) – Wall Street’s main indexes ended with substantial gains on Wednesday after minutes from the Federal Reserve’s November meeting indicated that interest rate hikes may be slowing in the near term.

A “vast majority” of policymakers agreed that slowing the pace of interest rate hikes “may be appropriate in the near term.” minute showed.

“What stock markets need to see for the recent strength to continue is what we get from the minutes,” said Michael James, managing director of equities trading at Wedbush Securities in Los Angeles.

Since the Fed’s last meeting on Nov. 1-2, investors have been optimistic that price pressures are beginning to ease, meaning that a reduced rate hike could curb inflation.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 95.96 points, or 0.28%, to 34,194.06 (.SPX) The Nasdaq Composite rose 23.68 points, or 0.59%, to 4,027.26. (.IXIC) It added 110.91 points, or 0.99%, to 11,285.32.

Trading volume was light on Thursday ahead of the Thanksgiving holiday, and the US stock market was open for half a session on Friday.

Earlier on Wednesday, a mixed bag of economic data sent the yield on the 10-year Treasury note lower, helping stocks rise.

The number of Americans filing new jobless claims rose more than expected last week, and US business activity contracted for a fifth straight month in November. Consumer sentiment improved and home sales beat expectations. read more

Traders work at the New York Stock Exchange (NYSE) in New York City, USA, November 22, 2022. REUTERS/Brendan McDermid/File photo

“I think you’re seeing renewed investor enthusiasm from people who see a beautiful light at the end of what was a very dark tunnel. And there was so much money on the sidelines that was coming back into the markets, waiting to get back into action,” said Moez Kassam, portfolio manager at Anson Funds.

Heavyweight stocks, including Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O)increased by 1.00% and 0.72%, respectively.

Tesla Inc (TSLA.O) up 7.82%, Citigroup upgraded the electric vehicle maker’s stock from a “sell” rating to a “neutral” rating.

Deere & Co (DE.N) rose 5.03% after the farm equipment maker reported better-than-expected quarterly revenue.

Nordstrom Inc fell 4.24% as a fashion retailer lowered the profit forecast in the case of sharp reductions to attract customers who hedge against inflation.

Volume on U.S. exchanges was 9.25 billion shares, compared with the 11.6 billion average for the full session over the past 20 trading days.

Advances outnumbered decliners on the NYSE by a 1.97-to-1 ratio; A 1.61-to-1 ratio on the Nasdaq favored the advancers.

The S&P 500 posted 21 new 52-week highs and no new lows, while the Nasdaq Composite recorded 97 new highs and 126 new lows.

Reports by Carolina Mandl, Shreyashi Sanyal and Ankika Biswas; Edited by Richard Chang, Rosalba O’Brien, and Chris Reese

Our standards are: Thomson Reuters Trust Principles.

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