London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

US stocks rise after Fed minutes show most policy makers are in favor of easing up on rate hikes

US stocks rise after Fed minutes show most policy makers are in favor of easing up on rate hikes

Stocks advanced for a second straight session with signs the Fed may begin cutting down on hefty rate increases as early as December.

US stocks overcame earlier losses to finish higher Wednesday, as minutes from the Federal Reserve's meeting this month indicated policymakers are prepared to cut the size of rate hikes aimed at chopping down inflation.

Wall Street's major indexes landed a second consecutive day of gains. The S&P 500 stretched further into the 4,000 level after closing above that mark on Tuesday for the first time since September. Nine of the index's 11 sectors gained ground, led by the consumer discretionary group.

A "substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate," minutes of this month's Fed meeting released Wednesday afternoon said. The central bank has pushed up the fed funds rate by 75 basis points at four straight meetings.

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

*  S&P 500: 4,027.26, up 0.59%

*  Dow Jones Industrial Average: 34,194.06, up 0.28% (95.96 points)

*  Nasdaq Composite: 11,285.32, up 0.99%

Fed speakers have been telegraphing since the November meeting they are heading toward easing the pace of its aggressive campaign, and a rate increase of 50 basis points may be in store for December, Quincy Krosby, chief global strategist at LPL Financial, wrote in a note.

"It doesn't mean that the Fed reaches its terminal rate in December – rather it could be a lower-for-longer path as the Fed assesses the lagged effect of the cumulative rates on the broader economy. While this doesn't represent the 'pivot' that the market has on its holiday wish list, it does represent an important transition in monetary policy," she said.

Stocks were mixed earlier Wednesday after the Labor Department said weekly jobless claims rose by 17,000 to 240,000. That was more than expected and marked the highest number of claims since August.

Among individual stocks, Deere shares climbed after the heavy equipment maker boosted its 2023 profit outlook to $8 billion to $8.5 billion. Nordstrom shares fell after the upscale retailer cut its 2022 per-share earnings outlook to a range of $2.13 to $2.43. Credit Suisse's US-listed shares fell after the bank under restructuring warned of a fourth-quarter loss of up to 1.5 billion Swiss francs ($1.6 billion).

Equity trading will be closed Thursday for Thanksgiving Day and end early on Friday, at 1 p.m. Eastern.

Here's what else is happening today:

*  Oil prices fell Wednesday following reports the European Union is thinking about capping Russian oil prices at $65-$70 a barrel.

*  An extremely rare signal flashed in the stock market on Tuesday, indicating big gains ahead for equities.

Elon Musk's focus on Twitter's turnaround creates three factors that put Tesla stock at risk, said Wedbush.

*  Warren Buffett's Berkshire Hathaway has slashed its stake in Chinese electric-vehicle make BYD - and has pulled in about $1.2 billion profit on the shares sold.

*  A lawyer for FTX said a substantial amount of assets belonging to the bankrupt crypto exchange were either missing or stolen.

*  Meanwhile, the court hearing FTX's bankruptcy petition was told the company spent around $300 million buying houses for senior executives in the Bahamas.

In commodities, bonds, and crypto:


*  West Texas Intermediate crude fell 2.7% to $78.73 per barrel. Brent crude, the international benchmark, fell 4% to $84.87.

*  Gold picked up 0.7% to $1,752.70 per ounce.

*  The 10-year Treasury yield fell 11 basis points to 3.70%.

*  Bitcoin rose 2% to $16,455.05.

Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×