May 23, 2024

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Wall Street rises after the minutes of the Federal Reserve meeting with expectations

Wall Street rises after the minutes of the Federal Reserve meeting with expectations

NEW YORK (Reuters) – Wall Street ended higher on Wednesday after the release of the minutes of the Federal Reserve’s latest monetary policy meeting, which showed policymakers felt unanimously that the U.S. economy was too strong as they struggled to rein in inflation without causing a recession. .

Minutes of the FOMC meeting in May, which culminated in a 50 basis point raise in the federal funds target price – the biggest jump in 22 years – showed most of the committee’s members showed that more such hikes are likely to be “appropriate” at its upcoming meetings in June and July. Read more

Consolidation is a good thing,” said Ross Mayfield, investment strategy analyst at The Bird Company in Louisville, Kentucky. “There is a lack of uncertainty about what to do in the near term.”

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“By the time they (the Fed) get into September, they’ll have a lot of economic data to take a step from there, so they continue to maintain selectivity,” Mayfield added.

All three major US stock indexes moved earlier in the day amid heightened tensions stemming from business and consumer surveys, economic data and corporate earnings reports pointing to a cold US economy – even as the Federal Reserve prepares to dump a bucket of cold water on it to deal with contracts. High inflation.

Fears that excessive interest rate hikes by the Federal Reserve could push the economy into recession despite evidence that inflation peaked in March have fueled those fears.

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“There is some credibility to the idea that inflation is doing the (Fed) job for them,” Mayfield said. “There is a lull already happening, and financial conditions have tightened over the past month due to the strong dollar and weak stock market.”

A person walks past the New York Stock Exchange (NYSE) in Manhattan, New York City, US, May 19, 2022. REUTERS/Andrew Kelly

On Thursday, the Commerce Department is due to release its second comparison of GDP for the first quarter, which analysts expect will slow a contraction slightly less than the 1.4% quarterly decline originally reported.

Friday’s PCE report will follow, which will provide more clues on consumer spending and whether inflation peaked in March, as other indicators have suggested.

According to preliminary data, the S&P 500 . index (.SPX) It rose 38.55 points, or 0.94%, to close at 3,980.03 points, while the Nasdaq Composite. (nineteenth) It rose 166.41 points, or 1.48%, to 11,430.86. Dow Jones Industrial Average (.DJI) It increased 192.51 points, or 0.60%, to 32,119.74 points.

Electric vehicle maker Tesla Inc (TSLA.O) The retail power of (AMZN.O) It provided the strongest lift for the S&P 500 and Nasdaq.

Nvidia chip maker (NVDA.O) Advance before first quarter results due after the bell.

Department store operator Nordstrom Inc (JWN.N) It rose on the heels of its upbeat annual earnings and revenue forecasts. Read more

Fast food chain Wendy’s Co (We do not) He jumped after a regulatory filing revealed that shareholder Nelson Peltz was considering a possible takeover of the company. Read more

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Stephen Kolb reports. Additional reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Jonathan Otis

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Our criteria: Thomson Reuters Trust Principles.