The stock market resumed its winning streak on Wednesday, as investors took on board the latest remarks from the Federal Reserve. US stocks moved higher on Wednesday, resuming their November rally as traders digested the latest comments from Federal Reserve officials and analyzed new economic data. Major indexes rose in early morning trading as bond yields eased, with the yield on the 10-year US Treasury slipping six basis points to about 4.276%. Federal Reserve officials recently hinted at a pause in interest rate hikes and suggested that cuts could be coming for markets due to falling inflation.
Chicago Fed President Austan Goolsbee added that the Fed risked keeping interest rates restrictive for too long, potentially pushing the economy into a recession. Interestingly, the risk of too-restrictive interest rates was illustrated with a colorful analogy, as Goolsbee said, “Anybody who cooks a turkey knows that you got to pull it out of the oven before it’s to the point where you want it to be, because it’s going to have residual heat.”
Investors now seem to be pricing in a 46% chance that the Fed could trim interest rates by March of next year, up from a 14% chance in late October. Meanwhile, consumers are displaying a more positive outlook on the state of the economy, with the Consumer Confidence Index edging higher to 102 in November, up from the revised reading of 99 in October. Additionally, GDP saw a small upwards revision, with the economy growing at an estimated 5.2% pace last quarter, up from the originally estimated 4.9%, according to the Commerce Department.
Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:
– S&P 500: 4,582.76, up 0.61%
– Dow Jones Industrial Average: 35,483.00, up 0.17% (+61.78 points)
– Nasdaq Composite: 14,409.43, up 0.89%
Regarding commodities, bonds, and cryptocurrencies:
– West Texas Intermediate crude oil rose 1.14% to $77.28 per barrel.
– Brent crude oil, the international benchmark, inched higher 0.99% to $82.28.
– Gold slipped 0.09% to $2,039.76 per ounce.
– The yield on the 10-year Treasury slid six basis-points to about 4.276%
– Bitcoin climbed 1.76% to $38,049.
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