- Growth stocks bounce as government interest rates fall
- Tesla jumps as Citigroup upgrades
- Nordstrom falls on reduced profit forecast
Nov 23 (Reuters) – Wall Street’s main indexes ended Wednesday with solid gains after the Federal Reserve’s November meeting minutes showed interest rate hikes may soon slow.
A “substantial majority” of policymakers agreed that it would “probably be appropriate soon” to slow the pace of rate hikes, the minutes showed.
“What equity markets needed to see for the recent strength to continue was what we got from the minutes,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Since the Fed’s last meeting on 1-2 As of November, investors have been more optimistic that price pressures have begun to ease, meaning smaller interest rate increases could reduce inflation.
According to preliminary data, the S&P 500 (.SPX) gained 24.03 points, or 0.61%, to end at 4,027.46, while the Nasdaq Composite (.IXIC) gained 112.77 points, or 1.01%, to 11,287.18. The Dow Jones Industrial Average (.DJI) rose 97.01 points, or 0.30%, to 34,200.35.
Trading volume was thin ahead of the Thanksgiving holiday on Thursday, with the US stock market open for half a session on Friday.
Earlier Wednesday, a mixed bag of economic data led to a drop in the yield on the benchmark 10-year Treasury, helping to boost stocks.
The number of Americans filing new jobless claims rose more than expected last week, and U.S. business activity slowed for a fifth straight month in November. Consumer sentiment ticked higher and house sales rose above expectations.
“What I think you’re seeing is renewed investor enthusiasm driven by those who see the beautiful light at the end of what has been a very dark tunnel. And there’s been so much money on the sidelines rushing back into the markets waiting to come back to the action,” said portfolio manager Moez Kassam at Anson Funds.
Heavyweight stocks including Amazon.com Inc ( AMZN.O ) and Meta Platforms Inc ( META.O ) rose.
Tesla Inc ( TSLA.O ) jumped ship with Citigroup, upgrading the electric car maker’s stock to “neutral” from a “sell” rating.
Deere & Co ( DE.N ) rose after the farm equipment maker reported a better-than-expected quarterly profit.
Nordstrom Inc fell as the fashion retailer cut its profit forecast amid steep declines to attract inflation-wary customers.
Reporting by Carolina Mandl, Shreyashi Sanyal and Ankika Biswas; Editing by Anil D’Silva, Richard Chang and Rosalba O’Brien
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