London Daily

Focus on the big picture.

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

"It is entirely possible the December hike of 50 basis points could be the last hike," Fundstrat's Tom Lee said of Fed Chair Jerome Powell's speech.

US stocks soared on Wednesday, led by the Nasdaq Composite, which was up as much as 4% after Federal Reserve Chairman struck a dovish tone in a speech to the Brookings Institution.

The other major indexes also spiked on the Fed chief's comments. The Dow Jones Industrial Average surged 737 points and the S&P 500 ended up more than 3%. 

In his remarks, Powell said there are signs inflation is beginning to finally ease, and that it makes sense for the Fed to slow down its interest rate hikes as soon as December. 

"The time for moderating the pace of rate increases may come as soon as the December meeting," Powell said, though he did hedge his comments by saying there is still work to be done in terms of taming inflation. 

But Fundstrat's Tom Lee believes Wednesday's speech from Powell could mark a shift going forward that leads to a less hawkish Fed. "It is entirely possible the December hike of 50 basis points could be the last hike," Lee told clients in a Wednesday note.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

*  S&P 500: 4,080.10, up 3.09%

*  Dow Jones Industrial Average: 34,589.77, up 2.18% (737.24 points)

*  Nasdaq Composite: 11,468.00, up 4.41% 

Here's what else happened today:

*  The US dollar is on pace for its largest monthly loss since 2010. In November, it has fallen 4.2% against a basket of currencies, according to the WSJ Dollar Index.

Elon Musk called on the Federal Reserve to slash interest rates as soon as possible in a Tweet on Wednesday. Musk warned that the rapid rate hikes this year have dramatically increased the risk of a deep and painful economic downturn in the US.

*  Musk isn't the only person warning of a steep recession ahead. Both Michael Burry and Danny Moses of "The Big Short" fame warned of an imminent downturn ahead.

*  Kraken, the third-largest cryptocurrency exchange by volume, said on Wednesday that it would slash 30% of its work force.

*  Economic data was mixed on Wednesday, with third-quarter GDP growth revised upwards to 2.9% from 2.6%. Meanwhile, the November payroll report from ADP showed private companies adding 127,000 jobs, well below estimates for 190,000 jobs. The Labor Department's November jobs report will be released this Friday.

In commodities, bonds and crypto:


*  West Texas Intermediate crude oil jumped 3.18% to $80.69 per barrel. Brent crude, oil's international benchmark, rose 4.81% to $87.02.

*  Gold rose 1.08% to $1,782.70 per ounce.

*  The yield on the 10-year Treasury fell six basis points to 3.69%.

*  Bitcoin rose 1.14% to $17,064, while ether jumped 1.88% to $1,293.

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Netanyahu Denounces World Court Ruling on Israeli Occupation
Adidas Drops Bella Hadid Over Controversy
Global Outage Caused by CrowdStrike Update Impacts Millions
Massive Flight Cancellations Across the U.S. Due to Microsoft Outage
Global Windows Outage Causes Chaos Across Banks, Airlines, and More
Russia Accuses Ukraine of Using Chemical Weapons
UK's Flawed COVID-19 Planning Exposed by Inquiry
Ursula von der Leyen Wins Second Term as European Commission President
Police Officer Injured in Attack in Central Paris
Hulk Hogan absolutely tore it up at the RNC.
Paris is being "cleansed" of migrants and homeless people ahead of the Olympics.
Lamine Yamal arriving at his school after winning the Euros
Campaigners Urge UK Government to Block Shein's London IPO
UK Labour Government's Legislative Agenda
UK Labour Government to Regulate Powerful AI Models
Record Heat Temperatures in Ukraine Amid Power Crisis
UK Government Plans to Remove 92 Hereditary Peers from House of Lords
King Charles III Delivers Labour Government's First King's Speech
Officials Remove 'Disastrous' Label from Liz Truss's Mini-Budget
Keir Starmer Outlines Ambitious Plans for Government
Japan to Allocate $3.3 Billion to Ukraine Using Frozen Russian Assets
EU Parliament Condemns Hungarian PM's Russia Visit
FBI Struggles to Find Motive Behind Trump Shooting Incident
Kremlin Criticizes EU Rejection of Orban’s Ukraine Peace Proposal
Google and Microsoft Now Consume More Power Than Several Large Countries
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
US Senator Robert Menendez Found Guilty of Corruption
Deep Concerns about Political Violence as US Approaches Election Day
Trump Media Shares Surge Following Re-Election Bid Boost
The gunman who attempted to assassinate Donald Trump Saturday is 20-year-old Thomas Matthew Crooks
Banksy's Influence on Port Talbot's Street Art Scene
Bodies of Two Men Found in Suitcases on Bristol Bridge, 24-Year-Old Arrested
Kate Middleton to Attend Wimbledon Men's Final Amid Cancer Recovery
Russia's Electronic Warfare Neutralizes Western Weapons in Ukraine
Trump Challenges Biden to Debate and Golf Match
Macron Accuses Israeli Minister of Election Interference
US Senator Highlights Weaknesses in Western Military Industry During Ukraine Conflict
George Clooney Urges Biden to Withdraw from Presidential Race
Political Shift in the UK: A Detailed Analysis of Labour's Victory and Future Prospects
Viktor Orbán's Peace Mission: A Diplomatic Controversy in the EU
India Advocates Peace and Prosperity: PM Modi's Speech in Austria
New UK PM Keir Starmer Reaffirms Strong Support for Ukraine at NATO Summit
Spain PM Pedro Sanchez Denounces Double Standards on Gaza at NATO Summit
UK Police Arrest Suspect in Crossbow Attack After Three Women Killed
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
France Faces Political Turmoil and Airport Strikes Ahead of Paris Olympics 2024
Putin Hosts PM Modi for a Private Meeting
TSMC: The Taiwanese Chip Giant Valued Over $1 Trillion
Boeing Pleads Guilty Over 737 MAX Crashes
×