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Wall Street rises as Fed signals slowdown in rate hikes

Published 11/23/2022, 07:19 AM
Updated 11/23/2022, 07:35 PM
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 22, 2022. REUTERS/Brendan McDermid

By Carolina Mandl and Sinéad Carew

(Reuters) - Wall Street's main indexes ended Wednesday with solid gains after the Federal Reserve's November meeting minutes showed interest rate hikes may slow soon.

A "substantial majority" of policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes, the minutes showed.

"What equity markets needed to see for the recent strength to continue was what we got from the minutes," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

Since the Fed's last meeting on Nov. 1-2, investors have been more optimistic that price pressures have started to ease, meaning smaller rate hikes could curtail inflation.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06, the S&P 500 gained 23.68 points, or 0.59%, at 4,027.26 and the Nasdaq Composite added 110.91 points, or 0.99%, at 11,285.32.

Trading volume was thin ahead of the Thanksgiving holiday on Thursday, with the U.S. stock market open for a half-session on Friday.

Earlier on Wednesday, a mixed bag of economic data led to a drop in yield on the benchmark 10-year Treasury note, helping drive stocks up.

The number of Americans filing new claims for unemployment benefits rose more than expected last week and U.S. business activity contracted for a fifth straight month in November. Consumer sentiment ticked higher and home sales rose above expectations.

"What I think you're seeing is renewed investor enthusiasm fueled by those who see that beautiful light at the end of what has been a very dark tunnel. And there has been so much money on the sidelines that is rushing back into the markets and waiting to get back into the action," said portfolio manager Moez Kassam of Anson Funds.

Heavyweight stocks, including Inc (NASDAQ:AMZN) and Meta Platforms Inc, rose 1.00% and 0.72%, respectively.

Tesla (NASDAQ:TSLA) Inc jumped 7.82% with Citigroup (NYSE:C) upgrading the electric-vehicle maker's stock to "neutral" from a "sell" rating.

Deere (NYSE:DE) & Co soared 5.03% after the farm equipment maker reported a higher-than-expected quarterly profit.

Nordstrom Inc (NYSE:JWN) fell 4.24% as the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers.

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

© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 22, 2022. REUTERS/Brendan McDermid/File Photo

Advancing issues outnumbered decliners on the NYSE by a 1.97-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored 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.

Latest comments

CCP just went into Lockdown!
the fed is thanos. they will snap the finger and wipe out everything and get to their 2% inflation goal. gg
maybe Fed does not matter. China supply chain might be strangled again die to worsening covid there Then, inflation could get worse and worse. fed may have to tighten again and again. no one knows.
I think you shills should get off this line. Shilling for various advisers. --Also if you want to share results, give 1 year or preferably 3-5 year results---not a week
feels like worst market crash is coming
last time powell said pivot is premature. he did not say anything otherwise since then. let him come and say what he has in mind.
ridiculous thing is that pundits talk like he or she is powell
what matters is powell. whatever other members mumbled don't matter. powell looks determined to be hawkisest ever.
Market reaction today was a no-brainer. Fed members telegraphed their positions all week long.
why not put all that money into factories and jobs and actually the real economy
there has to be increasing demand before corporations increase production or plan an expansion of services..... and hire more employees.....
Fruad ******making excuse for this scam market to go up
nasdaq rises because of rising stocks?
Fed minutes will be interpreted according to the interpreter. So no more what it actually says someone will interpret it as meaning a Fed pivot.
Minutes are stale news.  A lot of Fed members spoke after the last FOMC meeting.
And you believe what they said? 🤣🤣🤣
Your news is a bit stale.
Check article's timestamp
Dow jumps up 100 points at the opening. 1000 points rally day anyone?
The manipulation is ridiculous. People say, it's the algos causing this. Well, just like software, humans have to program the black boxes.
the FEDs monetary policy is crystal clear - everyone is imagining FED easing soon - it's not going to happen and Powell made it perfectly clear what the conditions needed to be to slow down the tightening - and none of those measures have been met - the hopium will be stamped out pretty soon! Every time the market goes up, the FED needs to quash expectations - as market up means loosening
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