- Growth stocks bounce as government bond yields fall
- Tesla jumps as Citigroup upgrades
- Nordstrom falls on lowered profit forecast
Nov 23 (Reuters) – Wall Street’s major indices closed with solid gains on Wednesday, after the minutes of the November Federal Reserve meeting indicated rate hikes could soon slow.
A “significant majority” of policymakers agreed that it would be “probably soon appropriate” to slow the pace of rate hikes, the minutes showed.
“What the stock markets needed to sustain the recent strength was what we got out of the minutes,” said Michael James, director of equity trading at Wedbush Securities in Los Angeles.
Since the last Fed meeting on November 1-2, investors have become more optimistic that price pressures are beginning to ease, meaning smaller rate hikes could limit inflation.
According to preliminary data, the S&P 500 (.SPX) gained 24.03 points, or 0.61%, to finish at 4,027.46 points, while the Nasdaq Composite (.IXIC) gained 112.77 points, or 1.01%, to 11,287.18. The Dow Jones Industrial Average (.DJI) increased by 97.01 points, or 0.30%, to 34,200.35.
Trading volume was thin ahead of Thanksgiving on Thursday, while the US stock market was open for half a session on Friday.
Earlier on Wednesday, a mixed bag of economic data led to a drop in yields on the benchmark 10-year Treasury bill, sending shares higher.
The number of Americans filing new claims for unemployment benefits rose more than expected last week and US business activity contracted for a fifth consecutive month in November. Consumer confidence ticked higher and home sales rose above expectations.
“What I think you are seeing is a renewed enthusiasm from investors fueled by those who are seeing that beautiful light at the end of what has been a very dark tunnel. And there has been so much money on the sidelines rushing back into the markets and waiting to get back into action,” said Anson Funds portfolio manager Moez Kassam.
Tesla Inc (TSLA.O) jumped with Citigroup upgrading the electric vehicle manufacturer’s stock to “neutral” from a “sell” rating.
Deere & Co (DN) surged after the farm equipment maker reported higher-than-expected quarterly earnings.
Nordstrom Inc fell as the fashion retailer slashed its earnings forecast amid hefty price cuts to attract inflation-conscious shoppers.
(This story has been resubmitted to correct a typo in the headline.)
Reporting by Carolina Mandl, Shreyashi Sanyal and Ankika Biswas; Edited by Anil D’Silva, Richard Chang and Rosalba O’Brien
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