![Traders working on the floor of the NYSE in New York](https://cloudfront-us-east-2.images.arcpublishing.com/reuters/MJPJBJP45VJJRMLJSTLN7ISOLM.jpg)
Traders work on the floor of the New York Stock Exchange (NYSE) on October 20, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File photo Obtaining license rights
Nov 28 (Reuters) – Wall Street’s main indexes reversed gains on Tuesday after dovish comments from some Federal Reserve officials raised hopes of a possible interest rate cut next year. did.
Director Christopher Waller has signaled that interest rates could be cut in the coming months if inflation continues to ease, and Chicago Fed President Austan Goolsby said overall inflation is falling at a pace not seen since the 1950s. He showed his perspective.
Expectations in money markets for a rate cut of at least 25 basis points in May 2024 rose to nearly 63% from about 50% before central bank officials’ comments, according to CME Group’s FedWatch tool. .
All three major indexes turned to monthly gains after three consecutive months of declines on optimism about interest rate cuts. This rally also brought the S&P 500 Index (.SPX) very close to its 2023 intraday high.
Rick Meckler said: “The[Fed’s]comments have refocused investors on the idea that inflation is coming down, and that lower inflation means lower interest rates and, ultimately, higher markets. I hope so.” , a partner at Cherry Lane Investments.
Meanwhile, Director Michelle Bowman said the central bank would need to raise borrowing costs further to bring inflation down to its 2% target, and would need to rein in further increases in borrowing costs.
The Beige Book, which compiles personal consumption expenditure data, an inflation indicator recommended by the Federal Reserve, and an overview of the U.S. economy to be released later this week, will show how the economy is doing in a tightening monetary environment. It will be.
As of 11:39 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 174.29 points (0.49%) at 35,507.76, the S&P 500 (.SPX) was up 16.54 points (0.36%) at 4,566.97, and the Nasdaq rose 16.54 points (0.36%) to 4,566.97. The index rose 174.29 points (0.49%) to 35,507.76. The Composite Stock Price Index (.IXIC) rose 59.27 points (0.42%) to 14,300.29.
Ten of the 11 major sectors in the S&P 500 index rose, with utility stocks (.SPLRCU) leading the way, rising 0.8%.
Data showing U.S. consumer confidence rose in November after three consecutive months of decline also contributed to the rise in market sentiment.
Among individual stocks, Boeing Co. (BA.N) received a 2.0 after RBC Capital Markets upgraded the aerospace company from “sector perform” to “outperform” and set its price target at the highest price on the market. It rose by 3%.
U.S.-listed shares of PDD Holdings (PDD.O) rose 17.6% after the Chinese e-commerce company beat sales expectations for the third quarter.
Affirm Holdings (AFRM. O) rose 5.9%, extending its rise from Monday.
Meanwhile, Micron Technology (MU.O) shares fell 2.4% after the semiconductor company announced that operating expenses for the first quarter are expected to be higher than previously expected.
Advancing issues outnumbered declining issues on the New York Stock Exchange by a ratio of 1.74 to 1 and on the Nasdaq by a ratio of 1.18 to 1.
The S&P index recorded 19 new highs and one new low in 52 weeks, while the Nasdaq recorded 55 new highs and 81 new lows.
Report by Shristi Achar A and Amruta Khandekar in Bangalore.Editing: Shinjini Ganguly
Our standards: Thomson Reuters Trust Principles.