Wall Street rose as the Federal Reserve signaled a slowdown in rate hikes

  • Growth stocks bounce as Treasury yields fall
  • Tesla jumps with Citigroup’s upgrade
  • Nordstrom sits on low profit expectations
  • The Dow Jones Industrial Average closed at its highest level since April
  • Dow Jones rose 0.28%, S&P 500 0.59%, Nasdaq 0.99%

(Reuters) – Wall Street’s major indexes ended with strong gains on Wednesday after minutes from the Federal Reserve’s November meeting showed that rate hikes may slow soon.

The minutes showed that a “significant majority” of policymakers agreed that “it is likely to be appropriate soon” to slow the pace of rate hikes.

“What the stock markets needed to see for continued recent strength is what we got on the record,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

Since the Fed’s last meeting on November 1-2, investors have been more optimistic that price pressures are beginning to abate, which means lower interest rate hikes could curb inflation.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06 points, the Standard & Poor’s 500 rose 23.68 points, or 0.59%, to 4,027.26 points, and the Nasdaq Composite Index increased 110.91 points, or. 0.99% at 11,285.32.

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

Earlier on Wednesday, a mixed batch of economic data led to a drop in the yield on the benchmark 10-year Treasury note, which helped stocks rally.

The number of Americans filing new claims for unemployment benefits rose more than expected last week and US business activity contracted for the fifth consecutive month in November. Consumer sentiment rose and home sales rose above expectations. Read more

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, November 22, 2022. REUTERS/Brendan McDiarmid/File Photo

“What I think you’re seeing is the renewed investor enthusiasm fueled by those seeing that beautiful light at the end of what was a very dark tunnel. And there was a lot of money on the sidelines rushing back into the markets, waiting to come back,” said portfolio manager Moez Kassam of Anson Funds. To work”.

Stock heavyweights, including Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O), rose 1.00% and 0.72%, respectively.

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

Deere & Co (DE.N) rose 5.03% after the agricultural equipment maker reported higher-than-expected quarterly earnings.

Nordstrom Inc stock fell 4.24% as the fashion retailer cut its profit forecast amid sharp cuts to lure inflation-wary customers.

Trading volume on US exchanges reached 9.25 billion shares compared to an average of 11.6 billion for the full session over the last 20 trading days.

Advances outnumbered losers on the New York Stock Exchange by a ratio of 1.97 to 1; On the Nasdaq, a ratio of 1.61 to 1 favored the bulls.

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

(Reporting by Carolina Mandel, Shriyashi Sanyal, and Ankika Biswas); Editing by Richard Chang, Rosalba O’Brien and Chris Reese

Our Standards: The Thomson Reuters Trust Principles.

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