Wall Street is rallying in hopes of a less aggressive Fed

  • Some Fed officials show willingness to slow hikes -WSJ
  • Twitter, Meta fall after Snap’s ad warning
  • AmEx, Verizon Communications Decline After Earnings
  • The Dow gained 2.13%, the S&P 500 gained 2.03% and the Nasdaq gained 1.87%.

NEW YORK, Oct 21 (Reuters) – U.S. stocks rose on Friday after a report said the U.S. Federal Reserve may discuss a small interest rate hike in December.

Some central bank officials have begun to express their desire to slow the rate of hikes sooner, According to the Wall Street JournalAnd how to signal plans to approve a small increase in December.

San Francisco Federal Reserve President Mary Daly echoed that sentiment, saying it’s time to start talking about slowing borrowing costs.

Sign up now for unlimited free access to Reuters.com

“It has a big influence because it’s so interesting at the moment, it attaches itself to any topic that the market sees positively or negatively, and then it plays out one way,” said Ken Polgari, managing partner at Case. Capital Advisors in Boca Raton, Florida.

Daly’s report on a possible slowdown is being interpreted as a positive headline, so the market is improving, he added.

Analysts widely expect the central bank to raise rates by 75 basis points at its fourth meeting in November. Stocks have been under pressure this year as the central bank embarks on an aggressive rate-hike path as it tries to reign in stubbornly high inflation, amid mounting concerns of a policy error that could send the economy into recession.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 646.73 points, or 2.13%, to 30,980.32. (.SPX) The Nasdaq Composite rose 74.27 points or 2.03% to 3,740.05. (.IXIC) It added 198.82 points, or 1.87%, to 10,813.66.

See also  Chloe Kardashian's daughter Drew Thompson was photoshopped at Disneyland photos.

Each of the three major indexes is on track for its biggest weekly percentage gains in four months.

The news helped Snap Inc recover from early losses (SNAP.N) It fell 30.07% after posting its slowest quarterly revenue growth in five years as advertisers cut spending due to inflation and geopolitical woes.

It weighs on other companies that rely heavily on ad revenue, such as Meta Platforms Inc. (META.O)1.22% down, and Pinterest (PINS.N)7.42% discount.

American Express plunged after its quarterly earnings report (AXP.N)It fell 2.88% and Verizon Communications (VZ.N)4.58% down

While Verizon’s profit fell 23% and the carrier missed estimates for wireless subscriber additions, American Express said it had made major provisions to prepare for possible defaults caused by the economic downturn.

Next week comes earnings from names like Twitter (TWTR.N)Microsoft Corp (MSFT.O)letters (GOOGL.O) and Apple Inc (AAPL.O).

Despite recent disappointing results, the third-quarter earnings season has been better than feared so far, with growth expectations for S&P 500 companies at 3.1%, up from 2.8% the week before, according to Refinitiv data. Below the 11.1% forecast in early July.

Schlumberger (SLB.N) Rising 10.51%, the S&P 500 helped lift the energy sector (.SPNY) 2.71%, if it reports better-than-expected quarterly profit.

Advancing issues outnumber declining issues on the NYSE by a 2.37-to-1 ratio; On the Nasdaq, the ratio was 1.84-to-1 in favor of the advancers.

S&P 500 hits 8 new 52-week highs and 32 new lows; The Nasdaq Composite posted 36 new highs and 285 new lows.

Sign up now for unlimited free access to Reuters.com

See also  Russia-Ukraine war live updates: Ukrainian military puts an end to 'war work' in Mariupol

Reporting by Shreyashi Sanyal and Angika Biswas in Bangalore; Additional reporting by Bansari Mayur Kamdar; Editing by Anil de Silva, Arun Koyur, Shaunak Dasgupta and Arora Ellis

Our Standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.