Fall minutes of Wall Street rallies meet expectations

  • Fed minutes: ‘Opportunity’ for future 50-bp rate hikes
  • Nordstrom climbs after raising the profit perspective
  • Nvidia Q2 revenue forecast is lower than expected
  • Indices above: Dow 0.60%, S&P 0.95%, Nasdaq 1.51%

NEW YORK, May 25 (Reuters) – Wall Street closed higher on Wednesday, just minutes after the Federal Reserve’s recent monetary policy meeting, as policymakers unanimously showed the U.S. economy is strong.

Minutes of the Federal Open Market Committee’s May meeting, most members of the committee rated the 50-point point rise in the Fed’s fiscal target rate – the biggest jump in 22 years – as a “chance” of such rate hikes. Stay tuned for its upcoming June and July meetings. read more

“Consensus is a good thing,” said Ross Mayfield, an investment strategist at Bird in Louisville, Kentucky.

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“By September (the central bank) they will have plenty of economic data to move on from there, so they will continue to maintain the will,” Mayfield added.

Business and consumer surveys, economic data and corporate earnings reports said the US economy was cooling – even as a bucket of cold water prepared to pour over it for decades to come, all three major US stock indices were spinning amid day-to-day rising tensions. – High inflation.

Despite evidence that inflation peaked in March, fears that the central bank’s aggressive interest rate hikes could push the economy into recession have fueled those concerns.

“There is some credibility in the notion that inflation is doing the job for them (the central bank),” Mayfield said. “Already there has been cooling, and financial conditions have tightened over the past month due to dollar strength and stock market weakness.”

On Thursday, the trade sector is set to release its second tag of GDP in the first quarter, which analysts expect to ease a slightly shallower contraction than the previously announced 1.4% quarterly annual decline.

The Personal Consumption Expenditure (PCE) report will come out on Friday, which will provide additional clues as to whether inflation peaked in March as recommended by consumer spending and other indicators.

On May 19, 2022, a man walks through the New York Stock Exchange (NYSE) in Manhattan, New York. REUTERS / Andrew Kelly

Dow Jones Industrial Average (.DJI) The S&P 500 was up 191.66 points, or 0.6%, at 32,120.28 (.SPX) 37.25 points or 0.95% to 3,978.73, the Nasdaq joint (.IXIC) 170.29 points, or 1.51%, to 11,434.74.

Nine of the 11 major sectors in the S&P 500 rose with consumer preference. (.SPLRCD) Is leading with a gain of 2.8%.

Amazon.com Inc (AMZN.O) And Tesla Inc. (TSLA.O) The S&P 500 and Nasdaq saw strong gains, up 2.6% and 4.9%, respectively.

Supermarket Operator Nordstrom Inc (JWN.N) Increased 14.0% due to its encouraging annual profit and revenue forecasts. read more

Fast food chain Wendys Co. (WEN.O) The stock rose 9.8% after a regulatory filing revealed that partner Nelson Belts was considering an acquisition of the company. read more

Nvidia Corp shares (NVDA.O) The company’s second-quarter earnings fell more than 8% in hourly trading after falling short of forecast expectations. read more

Progress issues are higher than declining issues at a 3.56-to-1 ratio in the NYSE; At Nasdaq, the 2.22-to-1 ratio was in favor of the advanced.

The S&P 500 recorded three new 52-week highs and 32 new lows; The Nasdaq Composite set 23 new highs and 255 new lows.

The U.S. stock market volume was 11.19 billion shares, compared to the average of 13.27 billion shares for the full session in the last 20 trading days.

(The story was reprinted to change “ratings” to “expectations” in the third bulletin headline on Nvidia)

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Stephen Gulp Report; Additional Report by Anisha Sirkar and Devik Jain in Bangalore; Editing by Jonathan Odyssey

Our standards: Thomson Reuters Trust Principles.

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