Stock market today: Dow ends higher as Fed minutes show end of jumbo hikes 'soon'

By Yasin Ebrahim

Investing.com -- The Dow closed higher Wednesday, as the Federal Reserve’s November meeting minutes showed support for slowing of rate hikes “soon” at a time when data continue to point to a slowing economy.

The Dow Jones Industrial Average gained 0.28%, or 96 points, the Nasdaq rose 1%, and the S&P 500 rose 0.6%,

“A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” the Fed's minutes showed.

The further hint at a slowing pace of rates reaffirmed investor expectations that the central bank is likely to slow hikes to 50 basis points at its December meeting.

“We continue to expect the Fed to hike by 50bp in December but then by only 25bp in January, with no further hikes,” Pantheon Macroeconomics said in a note following the Fed meeting.

The bets on a slower pace of rate hikes come in the wake of data Wednesday showing weaker-than-expected housing, manufacturing and services activity.  

Treasury yields slipped further into the red following the minutes, paving the way for growth sectors of the market including consumer discretionary and tech to add to early-day gains.

Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) led the gains for big tech rising more than 1%. Apple (NASDAQ:AAPL) rose less than 1% even as iPhone supply worries continued to linger amid Covid-19 lockdowns at China-based supplier Foxconn.

Despite the supply worries, Apple is seeing "strong" iPhone upgrade activity from AT&T and Verizon and in-store activity has been "solid,” Wedbush said in a note.

Consumer stocks, meanwhile, were led higher by a more than 7% rise in Tesla (NASDAQ:TSLA) after Citigroup upgraded the stock to neutral from sell, citing a more balanced valuation following the recent pullback.

The earnings front, meanwhile, delivered mixed quarterly results.

Deere&Company (NYSE:DE) delivered a full-year outlook pointing to ongoing demand after reporting quarterly results that topped Wall Street estimates, sending its shares more than 6% higher.

Nordstrom (NYSE:JWN) fell 5% as better-than-expected quarterly results were offset by slowing sales that raised concerns that the department store may have to increase promotional activity, hurting margins.

“[W]e struggle to see how JWN will achieve its implied 7.9% to 9.1% EBIT margin in 4Q,” Credit Suisse said in a note.

Energy stocks struggled to join in on the rally as falling oil prices weighed on investor sentiment amid data showing a larger-than-expected drop in weekly U.S. crude stockpiles and reports that G7 nations are weighing up a price cap on Russian oil in a range of $65 to $70 per barrel.

Schlumberger NV (NYSE:SLB), ConocoPhillips (NYSE:COP), and Halliburton (NYSE:HAL) were the biggest drags in the sector.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: