Wall Street stocks make further gains after release of Fed minutes

Wall Street stocks extended their early gains on Wednesday afternoon, after minutes of the Federal Reserve’s latest policy meeting underscored the US Federal Reserve’s desire to stubbornly curb high inflation.

The Fed earlier this month raised Its interest rate is 0.5 percentage points, the largest increase in more than 20 years, and has signaled that it will do the same in its next two sessions in an attempt to curb inflation.

Consumer prices in the US rose 8.3% year-on-year in April, a slight decline from the previous month but still close to a 40-year high.

Minutes from the appointment Published on Wednesday showed that officials discussed the use of more aggressive interest rate hikes, but were concerned about the impact this would have on the labor market.

The S&P 500, which plunged into bear market territory last week after several difficult months for global equities, ended up 0.9%, rising shortly after the minutes were released, after rising 0.2% earlier. The high-tech Nasdaq Composite rose 1.5 percent.

The stock rose in huge trading earlier that day despite a series of disappointing updates on the strength of the manufacturing and retail industries.

Orders for Capital Products, Proxy Important for the Future of U.S. Production Output, Rose 0.4 percent In April compared to the previous month, the increase slowed by 0.6% from March and below economists’ estimates. A core reading of delivery orders, which can skew the data, also missed forecasts, rising 0.3%.

On the corporate front, Dick’s Sporting Goods became the last U.S. consumer business to lower its earnings forecast, lowering its early-trading stocks before they recovered sharply. Group meeting Across the stock markets on Tuesday after social media group Snap warned of macroeconomic conditions, investors were alarmed by disappointing housing data in the US and business surveys.

“Markets tell us the risks of recession are rising,” said Mary Nicola, portfolio manager for multi-asset investment at PineBridge Investments.

However, analysts said stocks are finding some support from rebalancing by funds that had to buy stocks to maintain asset allocation mandates following strong declines in the value of their existing holdings.

The euro lost 0.6 percent against the dollar to just under $ 1.07, as a jump fed by European Central Bank President Christine Lagard marks the end Negative interest In the eurozone it has faded.

Elsewhere in the stock markets, the regional Stoxx 600 meter in Europe added 0.6%.

Government bond prices rose slightly during the day, but changed slightly after the Fed Protocol was published. , Fell 0.02 percentage points to 2.5%, after rising above 2.8% earlier this month.

Wall Street stocks make further gains after release of Fed minutes Source link Wall Street stocks make further gains after release of Fed minutes

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