- Growth stocks rise as Treasury yields fall
- Tesla jumps as Citigroup improves
- Nordstrom falls on lower profit forecast
- The Dow Jones Industrial Average closed at its highest level since April
- The Dow was up 0.28%, the S&P 500 was up 0.59% and the Nasdaq was up 0.99%.
Nov 23 (Reuters) – Wall Street’s major indexes ended with solid gains on Wednesday, after minutes from the Federal Reserve’s November meeting showed that interest rate hikes may soon taper off.
The minutes show that a “substantial majority” of policymakers agreed that slowing the pace of interest rate hikes “would soon be appropriate.”
“We got from the minutes what equity markets need to see for the recent strength to continue,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Since the central bank’s last meeting on Nov. 1-2, investors are increasingly optimistic that price pressures have begun to ease, meaning that small rate hikes could reduce inflation.
Dow Jones Industrial Average (.DJI) The S&P 500 rose 95.96 points, or 0.28%, to 34,194.06. (.SPX) 23.68 points, or 0.59%, to 4,027.26 and the Nasdaq Composite (.IXIC) It added 110.91 points, or 0.99%, to 11,285.32.
Trading volume was thin ahead of the Thanksgiving holiday on Thursday, and the U.S. stock market opened for half a session on Friday.
Earlier on Wednesday, a mixed bag of economic data led to lower yields on the 10-year Treasury note, helping to lift stocks.
The number of Americans filing new claims for unemployment benefits rose more than expected last week and U.S. business activity contracted for the fifth straight month in November. Consumer sentiment was up and home sales were higher than expected. read more
“I think what you’re seeing is investor excitement fueled by people seeing that beautiful light at the end of a very dark tunnel. And there’s so much money on the sidelines that has rushed back into the markets, waiting to get back into action,” said Moise Kassam, portfolio manager at Anson Funds.
Tesla Inc (TSLA.O) Citigroup raised shares of the electric vehicle maker by 7.82% from a “sell” rating to a “neutral” rating.
Deere & Co (DE.N) The farm equipment maker rose 5.03% after reporting higher-than-expected quarterly profit.
Nordstrom Inc fell 4.24% as the fashion retailer cut its profit forecast amid steep markdowns to woo inflation-wary customers.
Volume in US equities was 9.25 billion shares, compared to the full session’s average of 11.6 billion over the last 20 trading days.
Advancing issues outnumber decliners on the NYSE by a 1.97-to-1 ratio; On the Nasdaq, the ratio was 1.61-to-1 in favor of the advancers.
The S&P 500 posted 21 new 52-week highs and no new lows, while the Nasdaq Composite posted 97 new highs and 126 new lows.
Reporting by Carolina Mandal, Shreyashi Sanyal and Angika Biswas; Editing by Richard Chang, Rosalba O’Brien and Chris Rees
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