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Indices gain as Fed eyes lower rate hikes

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U.S. stocks rose on Wednesday after the release of November Fed meeting minutes. Most policymakers consider it appropriate to reduce the magnitude of the rate hikes, according to the minutes. The trade will be closed on Thursday for the Thanksgiving Day holiday. Something is loading.

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U.S. stocks overcame earlier losses to end higher on Wednesday, as minutes from the Federal Reserve’s meeting this month indicated policymakers were poised to scale back the scale of rate hikes aimed at curbing the inflation.

Wall Street’s major indexes posted a second straight 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 felt that a slower pace of upside would likely soon be appropriate,” according to the minutes of this month’s Fed meeting released Wednesday afternoon. The central bank has raised the federal funds rate by 75 basis points in four consecutive meetings.

Here’s where the U.S. indices stood at the 4:00 p.m. closing bell on Wednesday:

Fed speakers have been telegraphing since the November meeting that they are headed for a slower pace of its aggressive campaign, and a 50 basis point rate hike could be on the cards for December, wrote global strategist Quincy Krosby. chief at LPL Financial, in a note. .

“That doesn’t mean the Fed hits its terminal rate in December – rather, it could be a lower trajectory for longer as the Fed assesses the lagged effect of compounding rates on the broader economy. Well that this does not represent the ‘pivot’ the market has on its holiday wish list, it represents a significant shift in monetary policy,” she said.

Shares were mixed earlier on 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, shares of Deere climbed after the heavy-equipment maker raised its 2023 earnings outlook from $8 billion to $8.5 billion. Nordstrom shares fell after the high-end retailer cut its 2022 earnings-per-share outlook to a range of $2.13 to $2.43. U.S.-listed shares of Credit Suisse fell after the restructured bank announced a fourth-quarter loss of up to 1.5 billion Swiss francs ($1.6 billion).

Stock trading will close Thursday for Thanksgiving Day and end early Friday at 1 p.m. EST.

Here’s what else is happening today:

In commodities, bonds and crypto:

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