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US equities – Wall Street rises on signs of Fed rate hike

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(For live blogs from Reuters on the US, UK and European stock markets, type or click LIVE/ in the news window)

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Growth stocks rise as government bond yields fall

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Tesla jumps in as Citigroup upgrades

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Nordstrom falls on lower profit forecast

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Dow Jones Industrial closes at highest level since April

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Dow 0.28% higher, S&P 500 0.59% higher, Nasdaq 0.99% higher

(updates prices; quotes; adds specific stock)

by Carolina Mandel and Sinead Carew

Nov 23 (Reuters) – Wall Street’s major indices closed with solid gains on Wednesday, after the minutes of the November Federal Reserve meeting showed rate hikes could soon slow.

A “substantial majority” of policymakers agreed that it would be “appropriate shortly” to slow the pace of rate hikes, the minutes showed.

“Equity markets had to see the recent strength continue, and that’s what we got out of the minutes,” said Michael James, director of equity trading at Wedbush Securities in Los Angeles.

Since the Fed’s last meeting on November 1-2, investors are more optimistic that price pressures are beginning to ease, meaning a smaller rate hike could reduce inflation.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06, the S&P 500 rose 23.68 points, or 0.59%, to 4,027.26, and the Nasdaq Composite rose 110 .91 points, or 0.99%, to 11,285.32.

Trading volume was low on the Thursday leading up to Thanksgiving, while US stock markets were open for half of the session on Friday.

Earlier on Wednesday, a mixed bag of economic data led to a decline in yields on the benchmark 10-year Treasury bill, helping to lift shares.

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The number of Americans filing new claims for unemployment benefits rose more than expected last week and US business activity contracted for a fifth consecutive month in November. Consumer confidence picked up and home sales exceeded expectations.

“I think what you’re seeing is a renewed investor enthusiasm by people seeing that beautiful light at the end of a very dark tunnel. And there is so much money on the fringe that flows back into the markets.” and I look forward to getting back into action,” said Moej Kassam, portfolio manager at Anson Funds.

Heavyweight stocks, including Amazon.com Inc and Meta Platforms Inc, rose 1.00% and 0.72%, respectively.

Tesla Inc rose 7.82%, with Citigroup downgrading shares of the electric vehicle maker from a “sell” rating to “neutral”.

Deere & Co climbed 5.03% after the farm equipment maker reported higher-than-expected quarterly profit.

Nordstrom Inc fell 4.24% as the fashion retailer slashed its profit forecast amid heavy markdowns to attract inflation-conscious shoppers.

Volume on US exchanges was 9.25 billion shares compared to an average of 11.6 billion for the entire session over the past 20 trading days.

Issuers were outnumbered by a ratio of 1.97 to 1 on the NYSE; On the Nasdaq, the ratio of 1.61 to 1 favored the frontrunners.

The S&P 500 posted 21 new highs in 52 weeks and no new lows, while the Nasdaq Composite posted 97 new highs and 126 new lows. (Reporting by Carolina Mandal, Shreyashi Sanyal, and Ankika Biswas; editing by Richard Chang, Rosalba O’Brien, and Chris Reese)

Source: finance.yahoo.com

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