Wall St gains before holiday, investors optimistic Fed done raising rates
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Macy's Santa Claus and other guests ring the opening bell to celebrate the 97th Macy’s Thanksgiving Day Parade, at the New York Stock Exchange.
PHOTO: REUTERS
NEW YORK - US stocks rose on Nov 22 as investors were optimistic the Federal Reserve may be done raising interest rates and that the economy is still resilient.
Among the day’s economic data, the number of Americans filing new claims for unemployment benefits fell more than expected last week.
Separately, a survey showed US consumers’ inflation expectations rose for a second straight month in November.
Minutes on Nov 21 on the last Fed meeting showed a cautious approach towards monetary policy.
Still, stocks have risen sharply in recent weeks on the view that Fed is done hiking rates.
“Overall, you have a solid backdrop to the market,” said Dr Quincy Krosby, chief global strategist at LPL Financial, in Charlotte, North Carolina.
“The signals for the market, despite concerns over the economy and consumer spending, is that this market has sustainability in what is probably the most hospitable season for the market.”
She said stocks tend to rise just before the Thanksgiving holiday and also to rally heading into year-end. The market will be closed on Thursday for the US Thanksgiving Day holiday.
The Dow Jones Industrial Average rose 127.48 points, or 0.36 per cent, to 35,215.77, the S&P 500 gained 11.61 points, or 0.26 per cent, at 4,549.8 and the Nasdaq Composite added 49.74 points, or 0.35 per cent, at 14,249.72.
The technology sector was up 0.2 per cent, while communication services rose 0.7 per cent.
Among the day’s negatives, Nvidia’s shares fell 2.2 per cent after the chip designer forecast overall fourth-quarter revenue above Wall Street targets, but warned US export curbs could lead to a steep drop in sales in China.
Among other major movers, Deere & Co shares were down after the farm equipment maker forecast 2024 profit below analysts’ estimates. Peer Caterpillar also fell 1.7 per cent.
Advancing issues outnumbered decliners on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favoured advancers.
The S&P 500 posted 45 new 52-week highs and one new low; the Nasdaq Composite recorded 80 new highs and 89 new lows. REUTERS
