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Stocks rise against backdrop of Fed comments, China COVID surge

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US stocks surged Tuesday, accelerating their gains in the final hours of trading after a mostly calm pre-Thanksgiving session.

S&P 500 (^GSPC) and the technology-focused Nasdaq Composite each rose 1.4%, while the Dow Jones Industrial Average (^ DJI) rose by nearly 400 points, or about 1.2%. The S&P 500 closed above his 4,000 for the first time since September, and the Dow hit its three-month high.

Cleveland Federal Reserve Bank President Loretta Mester said on Tuesday, Restoring price stability remains top priority For herself and other members of the Federal Open Market Committee (FOMC), which sets monetary policy.

“We are committed to using our tools to put inflation on a sustainable downward trajectory to 2%,” he said at a bank-sponsored event.

Mester’s comments came a day after San Francisco Federal Reserve Governor Mary Daily Monday, officials said they could lift If inflation does not ease, the US central bank’s key policy rate will exceed 5%. Daly also said it was “premature” and “not on the table” to cancel December’s 75 basis points rate hike.

In commodities markets, oil fell to January lows on Monday after fears renewed lockdowns in China and reported production increases by Saudi Arabia and OPEC could weigh on demand. Prices have slowed down. Energy Minister Prince Abdulaziz bin Salman has since refuted the prospect of increased production, helping oil recover from the decline. West Texas Intermediate (WTI) crude futures rose to about $81 a barrel after he hit $75 a barrel on Monday.

A pandemic prevention officer in protective clothing stands outside a locked down apartment building during the ongoing outbreak of the novel coronavirus disease (COVID-19) in Beijing, China, November 12, 2022. REUTERS/Thomas Peter

On the corporate side, Zoom Video Communications stock (ZM) decreased by nearly 4% after video conferencing platforms Downward revision of full-year earnings forecast We also foresaw additional challenges posed by declining demand for online meetings.

Abercrombie & Fitch Co. stock (ANF) and American Eagle Outfitters, Inc. (AEO), meanwhile, rose about 21% and 18% respectively after reporting upbeat earnings that lifted sentiment about the outlook for the retail sector.

Just weeks after investors welcomed the end of aggressive lockdowns in the country, COVID cases surged across China, sending a new wave of restrictions to the world’s largest economy.

“The coronavirus threat continues to overwhelm the Chinese economy, threatening new disruptions to supply chains and commodity demand,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdowne. There is,” he pointed out.

The S&P 500 started the holiday-shortened Thanksgiving week lower than usual. Data from the Bespoke Investment Group show Monday of the week of Thanksgiving saw the index drop slightly historically, down 0.01%. In years like 2022, when the index fell more than 10% year-to-date, performance was more positive, with an average gain of 0.37%.

Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc

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