Wall Street up after the Fed “minutes”
by Sinéad Carew and Lisa Pauline Mattackal
The New York Stock Exchange ended higher on Wednesday, with the S&P-500 and the Dow Jones reaching closing records, after the publication of the minutes of the last meeting of the Federal Reserve (Fed) and in the waiting for inflation data as well as the start of the results season.
The Dow Jones index gained 1.03%, or 431.63 points, to 42,512.00 points.
The broader S&P-500 gained 40.91 points, or 0.71%, to 5,792.04 points.
The Nasdaq Composite advanced 108.70 points (0.60%) to 18,291.62 points.
This is the 44th closing record recorded this year by the S&P-500, its first in October.
Published in the afternoon, the “minutes” of the Fed’s September 17-18 meeting show that a “substantial majority” of officials at the institution supported an unusual rate cut of 50 basis points.
There was consensus, however, that the move did not commit the US central bank to any threshold or timetable for further reducing borrowing costs.
According to FedWatch, traders are now betting about 79% on a rate cut of 25 basis points in November, and 21% on keeping rates at their current level.
“The minutes confirmed what we thought and was a relief to investors,” said Lindsey Bell, chief strategist at 248 Ventures in Charlotte, North Carolina. “There was some debate about the 50 basis point cut, meaning there was not an overwhelming consensus about the need for such a drastic cut,” she added.
The market is now awaiting the report on Thursday morning on consumer prices, which will provide new information on inflation and possible measures from the Fed next month.
Furthermore, several large American banks will kick off the results season on Friday.
“The minutes further confirm that the Fed believes it has won the battle against inflation,” Lindsey Bell said. “So the consumer price index should not be a big surprise.”
Wall Street is having an up-and-down week as investors readjusted their positions after a better-than-expected monthly jobs report, suggesting the US economy is in a better place than they thought.
Still, tensions in the Middle East and Hurricane Milton are worrying the markets. Milton was expected to make landfall in the evening in Florida, with significant damage expected.
Although it erased some of its initial losses, Alphabet ended lower after the US Department of Justice indicated that it could ask a judge to force Google, owned by the technology giant, to separate from some of its activities.
Concern over Google has set back the communications services sector. For the most part, the major sectors of the S&P-500 advanced.
Also note, on the value side, the 3.4% decline in Boeing while discussions between the aircraft manufacturer and a major workers’ union are at an impasse.
Norwegian Cruise Line jumped 10.9% after Citi raised its recommendation for the ocean cruise group. Other companies in the sector, Carnival and Royal Caribbean Cruises also finished higher. Arcadium Lithium gained 30.9% following the announcement of its acquisition by Rio Tinto for $6.7 billion.
text_section_type=”notes” For further information, please click on the following codes: NYSE Nasdaq Market Summary……….. 25 Highest Volumes……….. ……. Largest increases in %…………… Largest declines in %…………… Index guide American stock exchanges…. Market statistics…………………… 10-year benchmark bond………… .Guide to US Sector Indices…Guide to US Stock Markets……Dow Jones Indices…………………….. Indices S&P…………….. Ex-dividend values…………………… Forecasts for the Dow Jones and the S&P..
(Written by Jean Terzian)
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