US stocks rise after Fed minutes
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Traders take part in a moment of silence at the start of trading in New York to remember the victims of a school shooting in Uvalde, Texas.
PHOTO: AFP
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NEW YORK (AFP) - Wall Street stocks finished a choppy session higher as investors took an optimistic view of Federal Reserve minutes that reiterated plans to raise interest rates.
Analysts welcomed statements that the Fed intends to move "expeditiously" to increase the benchmark borrowing rate and offload the massive bond holdings to tamp down inflation, statements that investors hope could improve the picture before long.
"If the Fed is this aggressive, it's not impossible to think that by July or August you could see an improvement in inflation that might limit the need for further tightening," said Gregori Volokhine of Meeschaert Financial Services, adding that markets were also pleased that the minutes did not mention a three-quarters point interest rate hike.
The Dow Jones Industrial Average climbed 0.6 per cent to 32,120.28.
The broad-based S&P 500 advanced 1 per cent to 3,978.73, while the tech-rich Nasdaq Composite Index jumped 1.5 per cent to 11,434.74.
Earlier, data showed that orders for US-made, big-ticket manufactured goods continued their upward trend last month, rising 0.4 per cent in April, slightly less than what analysts had expected but still indicating positive momentum.
Among individual companies, Dick's Sporting Goods jumped nearly 10 per cent after reporting better than expected quarterly profits but lowering its earnings forecast on rising inflation.
Toll Brothers jumped 8 per cent after reporting a jump in quarterly profits as the homebuilder described demand as still strong despite some moderation due to higher mortgage rates.
