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US stocks rise after Fed minutes show most policymakers favor rate hikes

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  • US stocks rose on Wednesday after the release of minutes from the November Fed meeting.
  • The minutes state that most policymakers consider it appropriate to reduce the size of the rate hike.
  • Trading is closed on Thursday for Thanksgiving Day.

US stocks reversed previous losses to end higher on Wednesday as minutes from this month’s Federal Reserve meeting indicated policymakers prepared to reduce the size of rate hikes to curb inflation. are ready.

Wall Street’s major indices closed with gains for the second day in a row. The S&P 500 moved further toward the 4,000 level after closing above that mark for the first time since September on Tuesday. Nine of the 11 sectors in the index gained ground led by the Consumer Discretionary group.

“A substantial majority of participants decided that a slowdown in growth rates would be appropriate soon,” said the minutes of this month’s Fed meeting, released Wednesday afternoon. The central bank has raised the Fed Funds rate by up to 75 basis points in four consecutive meetings.

Here were the US indices at the closing bell at 4:00 PM ET on Wednesday:

Fed speakers have been telegraphing since the November meeting that they are moving to slacken the pace of their aggressive campaign, and a 50 basis point rate hike could be on the horizon in December, Quincy, chief global strategist at LPL Financial Crosby, wrote in a note. ,

“This doesn’t mean the Fed will reach its end of December interest rate — rather, it could be a short and long road as the Fed assesses the backward impact of cumulative interest rates on the broader economy. However, it does not represent a “pivot” on the market’s holiday wish list represents a significant change in monetary policy,” she said.

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Shares were mixed on Wednesday after the Labor Department said weekly jobless claims would rise 17,000 to 240,000. This was higher than expected and marked the largest number of claims since August.

In individual stocks, shares of Deere rose after the heavy equipment maker raised its 2023 earnings forecast from $8.5 billion to $8.5 billion. Nordstrom shares fell after the luxury retailer cut its 2022 earnings per share outlook to a range of $2.13 to $2.43. US-listed shares of Credit Suisse fell after the bank warned of a loss of up to 1.5 billion Swiss francs ($1.6 billion) in the fourth quarter as part of a restructuring.

Stock trading ends on Thanksgiving Day on Thursday and ends at 1 p.m. Eastern Time on Friday.

Here’s what else is happening today:

In Commodities, Bonds and Crypto:

Source: markets.businessinsider.com

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