Advertisment
The S&P 500 advanced Wednesday after a summary of the Federal Reserve’s policy meeting last month reinforced hope for lower rates in the near future.
The Dow Jones Industrial index recovered 54.99 points to end Wednesday’s session at 40,889.96.
The much-broader index climbed 23.71 points to 5,620.83.
The NASDAQ hiked 102.05 points to 17,918.99.
Fed officials said a decrease to the borrowing cost during the September policy meeting was increasingly likely, according to minutes from the July gathering released Wednesday afternoon. The majority of participants indicated that loosening monetary policy would be appropriate if data continued to come in as expected.
That bolsters the expectations of market participants, with traders are pricing in a 100% chance of a rate cut next month. Where the Street diverges is on how big the potential reduction will be.
Investors on Wednesday also kept an eye on the latest earnings reports to trickle in. Target jumped more than 12% after reporting earnings for the fiscal second quarter that exceeded Wall Street’s expectations. But fellow retailer Macy’s dropped almost 13% on a lowered full-year sales forecast.
Traders are pricing in a 100% chance of a rate cut next month. To be sure, the Street is split over how big the reduction will be.
Prices for the 10-year Treasury gained ground, lowering yields to 3.80% from Tuesday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices erased $1.25 at $71.92 U.S. a barrel.
Gold prices charged $1.90 to $2,552.50.
US Market Updates