NEW YORK (AP) — U.S. stocks rallied after the Federal Reserve indicated it may not need to pump the brakes any harder on Wall Street and the economy. The S&P 500 rose 1.1% Wednesday. The Dow gained 221 points, and the Nasdaq composite jumped 1.
6%. Treasury yields also eased in the bond market after the Fed announced its decision to hold interest rates steady, as expected. The Fed hinted that a swift rise since the summer in Treasury yields, and the resulting tumble in stock prices, may be slowing inflation on their own and acting like rate-hike substitutes.NEW YORK — U.S. stocks are rallying Wednesday after the Federal Reserve indicated it may not need to pump the brakes any harder on Wall Street and the economy.
But Powell acknowledged that a recent run higher in longer-term Treasury yields, and the tumble in stock prices that caused, are working on their own to slow the economy and could be starving high inflation of its fuel. If they can do that persistently, he said they could help the Fed whip inflation without requiring more rate hikes.
Since the spring, longer-term Treasury yields have been rising rapidly and catching up with the Fed’s overnight rate. They’ve rallied as the U.S. economy has remained remarkably resilient and the central bank has warned it may keep its short-term rate high for a long time. Last month, it topped 5% to reach its highest level since 2007, up from less than 3.50% during the spring.
One report from ADP suggested hiring accelerated last month by employers outside the government, though not by as much as economists expected. A more comprehensive jobs report from the U.S. government will arrive on Friday.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Stock market today: Wall Street drifts in early trading ahead of Fed announcement on ratesNEW YORK (AP) — Stocks are drifting as Wall Street waits to hear what will come out of the Federal Reserve’s latest announcement on interest rates. The S&P 500 was up 0.
Lire la suite »
Wall Street Closes Higher as Investors Await Fed's Monetary Policy UpdateWall Street's main indexes closed higher as investors looked ahead to the Federal Reserve's monetary policy update and digested a mixed batch of earnings reports. The Fed is expected to hold interest rates steady, and investors will be monitoring Fed Chair Jerome Powell's comments for future plans. Despite disappointing earnings reports, some investors took the opportunity to look for bargains after recent weakness in stocks.
Lire la suite »
How weight loss drugs are capturing Wall Street’s imaginationWeight loss and diabetes drugs – a potential $100 billion industry – have captured Wall Street’s imagination. It’s a market dominated by just three products ...
Lire la suite »
Asian Shares Rise as Wall Street Recovers Some GroundAsian shares were mostly higher after Wall Street advanced to claim back some of the ground it gave up in another losing month. Tokyo's Nikkei 225 index added 2.4% after the Bank of Japan held back from major changes to its interest rate policy. The dollar weakened against the Japanese yen.
Lire la suite »
Wall Street Sentiment Indicator Shows S&P 500 Gaining 16% Over Next YearThere’s a bright side for investors reeling from a rare three-month slide in US stocks: The gloom is setting the stage for gains ahead, if history is any guide.
Lire la suite »