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Stocks rise after Fed minutes signal rate hike slowdown

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Stocks rose on Wednesday Minutes of the Federal Reserve’s Latest Policy Meeting It points to a likely slowdown in the pace of central bank rate hikes next month.

When the close bell rang on Wall Street, all three major indices were green numbers, with the S&P 500 up 0.6%, the Dow up 0.3% and the Nasdaq up 1%.

Wednesday was the last full trading session of the week for US investors. US markets are closed for Thanksgiving and are open for half a day on Black Friday.

The biggest move in the market on Wednesday came from energy markets, with WTI crude prices falling 4.3% to settle at $77.47 a barrel. Crude oil prices fell to $77.10 during the day, close to the lows of the year.

Markets reacted Wednesday afternoon to comments from the Fed suggesting that “many participants” would “would be appropriate to slow the pace of increase in the federal funds rate target range.”

Last month, the Fed raised its benchmark rate target range by 0.75% at its fourth consecutive meeting. The market expects the range to rise by 0.50% at his Fed meeting next month.

Elsewhere on the calendar, Wednesday was a busy day for economic data, with readings on the labor market, housing market and manufacturing sector coming early Wednesday.

latest data of weekly unemployment claim It showed 240,000 new applications for unemployment insurance last week. This is the highest since mid-August. Economists had expected the first claims for the week ending Nov. 19 to total 225,000.

Durable goods orders for October were also released early Wednesday, with last month’s orders up 1% against expectations of a 0.4% increase, according to Bloomberg data.

S&P Global’s Sales activity bulletin in November showed that Continued slowdown in economic output, the company’s manufacturing PMI plunged to a 30-month low and services sector activity hit a three-month low. Chris Williamson, chief business economist at S&P Global Market Intelligence, said Wednesday that these reports were consistent with the economy contracting at an annual rate of 1%.

consumer sentiment data from University of Michigan showed Consumers remain pessimistic about the outlook, with the index down 5% from October to 56.8 from 59.9. “In addition to the ongoing effects of inflation, rising borrowing costs, declining asset values ​​and weakening labor market expectations have also driven consumer attitudes down,” said Joan Shu, head of consumer research. I am doing,” he said.

In the housing field, sales of new detached houses A surprising increase in October, rose 7.5% to reach 632,000 a year, much faster than the 570,000 a year forecast by economists.home loan interest rate slightly lower this weekbelow recent highs.

Recent share price momentum continues

After S&P500 Closed on Tuesday after more than 4,000 people After the Dow Jones Industrial Average closed at a three-month high for the first time in two months, Wednesday confirmed investors continue to ride that positive momentum.

The Dow rose nearly 10% last month and the S&P 500 rose more than 6.5%. The tech-heavy Nasdaq continues to lag behind, gaining less than 3% during that time as rising interest rates and the collapse of the cryptocurrency market weigh heavily on the tech industry as a whole.

Still, recent market moves have made some strategists more bullish heading into the end of the year. Morgan Stanley When Published by Goldman Sachs A more cautious outlook for the stock market this week.

“The market is like a coiled spring,” said Brian Belsky, chief investment strategist at BMO Capital Markets. told Yahoo Finance Live on Tuesday“I think the market will continue to go up. [on the S&P 500] At the end of the year. “

Belski has set a year-end price target for the S&P 500 of 4,300. This means the index could rise another 8% or so by the end of the year.

In the cryptocurrency market, the fallout from the FTX collapse continues to affect the industry as a whole, even though bitcoin’s price rose a few percent on Wednesday and traded near $16,500. Defamation of FTX founder and former CEO Sam Bankman-Fried Said He’s scheduled to appear at the New York Times’ Dealbook conference next Wednesday, his first public appearance since the company filed for bankruptcy earlier this month.

On Tuesday, Digital Currency Group, the parent company of troubled exchange Genesis Global, became the latest major cryptocurrency player to reassure investors that a bankruptcy filing is not imminent.

and Note to DCG EmployeesCEO Barry Silbert said last week’s decision to halt reimbursement and new activity at Genesis was due to “discrepancies in the liquidity and tenor of Genesis’ loan book.” I got

Silbert revealed that inter-company loans were made between DCG and Genesis, but claimed that these loans were made “in the same vein as hundreds of cryptocurrency investment firms.”

In terms of earnings, Wednesday morning’s Deere & Co. results (DE) Sent 5% higher stock Agricultural giant reports better-than-expected profits.

See John Deere tractors at a tractor race called ‘Traktoryja’, held as part of the traditional Dojinki Harvest Festival. Gilartowice, Wadowice County, Poland, August 28, 2022. (Photo by Beata Zawrzel/NurPhoto via Getty Images)

Other moves early Wednesday included names announcing results after the market closed on Tuesday.HPQ), Nordstrom (JWN), Autodesk (ADSK).

HP shares rose 1.8% on Wednesday After the company announced plans In response to a slowdown in the PC market, we plan to reduce our workforce by up to 12%, or 6,000, by the end of 2025.

Nordstrom shares fell 4% on Wednesday After reporting With sales declining in the most recent quarter, the company expects lower earnings for the full year.

Autodesk stock lost over 5.5% after company cut down prospects Regarding billing and cash flow this year, it said, “There is less demand for multi-year upfront payments and more demand for annual contracts than we expected.”

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