Wall Street ended slightly higher after mixed Federal Reserve comments

Wall Street ended slightly higher after mixed Federal Reserve comments

Traders work on the floor of the New York Stock Exchange in New York

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, on October 20, 2023. REUTERS/Brendan McDiarmid/File Image Get License Rights

  • Micron declines as operating expense forecasts rise
  • Affirm Holdings is riding the Cyber ​​Monday wave
  • Boeing gains as RBC upgrades to ‘superior’
  • Indices: Dow Jones 0.24%, Standard & Poor’s 0.10%, Nasdaq 0.29%

NEW YORK (Reuters) – U.S. stocks closed with modest gains on Tuesday as investors analyzed conflicting statements from Federal Reserve officials, while upbeat consumer data provided some support.

The three major US stock indices lost momentum as the session progressed, but ended the range-bound session in the green.

“Even marathon runners have to stop to take a breath and drink water,” said Oliver Burch, senior vice president at Wealthspire Advisors in New York. “That doesn’t mean the race is over.” “We had a very strong November, and investors have every reason to be optimistic until the end of the year.”

Market participants are now scrutinizing monetary policy makers’ statements ahead of next month’s meeting of the Federal Open Market Committee (FOMC).

Federal Reserve Governor Christopher Waller said Tuesday that he is “increasingly confident” that the central bank’s current interest rate level is sufficiently restrained, and even hinted at the possibility of lowering interest rates in the coming months if inflation continues to fall near the Fed’s target of 2%. .

Chicago Fed President Austin Goolsbee praised progress in lowering inflation at a pace not seen since the 1950s.

On the other hand, statements by Federal Reserve Governor Michael Bowman indicated that another rate hike may be necessary to rein in inflation in a timely manner.

“(The Fed’s) mixed messages are fairly normal and happen every time the Fed gets closer to the end of the cycle, where some FOMC members and some Fed governors will feel more strongly than others that it’s time to stop (tightening Politics,” Porsche added.

Financial markets have priced a near-certain 98.9% probability that the Federal Open Market Committee will allow the Fed’s funds rate target to stand at 5.25%-5.50% when it convenes next month, according to CME’s FedWatch tool.

The crucial holiday shopping season has shifted into high gear, with survey data from the National Retail Federation indicating that consumers plan to spend about 5% more this year.

This is consistent with consumer confidence data released by the Conference Board early Tuesday, which surprised to the upside due to an improving near-term outlook.

Consumer confidence

Later in the week, the Commerce Department is scheduled to release its second estimate of third-quarter GDP, a broad personal consumption expenditures report, which covers income, spending and, most importantly, inflation.

The Dow Jones Industrial Average rose 83.51 points, or 0.24%, to 35,416.98 points, the Standard & Poor’s 500 Index gained 4.46 points, or 0.10%, to 4,554.89 points, and the Nasdaq Composite Index increased 40.73 points. 0.29% at 14281.76.

Eight of the 11 major sectors in the S&P 500 closed in positive territory, with consumer discretionary stocks (.SPLRCD) posting the largest percentage gain. Healthcare stocks (.SPXHC) suffered the largest loss today.

Boeing (BA.N) stock advanced 1.4% after RBC Capital Markets upgraded the stock to “outperform” from “sector perform.”

Shares of US-listed Chinese e-commerce company PDD Holdings (PDD.O) rose 18.1% after the company beat revenue estimates.

Affirm Holdings (AFRM.O) stock jumped 11.5%, continuing its Cyber ​​Monday rally.

Shares of chipmaker Micron Technology (MU.O) fell 1.8% after the company said it expects operating expenses in the first quarter to be higher than previously expected.

Advancing issues outnumbered declining stocks on the NYSE by a ratio of 1.24 to 1; On the Nasdaq, a 1.07-to-1 ratio favored losing stocks.

The S&P 500 posted 20 new 52-week highs and a new low. The Nasdaq Composite recorded 61 new highs and 103 new lows.

Trading volume on US stock exchanges reached 10.03 billion shares, compared to an average of 10.41 billion for the full session during the last 20 trading days.

Steven Kolb reports. (Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru – Preparing by Nancy for the Arabic Bulletin) Editing by Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

Obtaining licensing rightsopens a new tab

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *