Wall Street ends higher, Powell comments avoid interest rate policy

Wall Street ends higher, Powell comments avoid interest rate policy
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  • Investors await Thursday’s CPI data
  • Earnings season in the US starts this week
  • Jefferies shares rise after results
  • Indices: Dow up 0.6%, S&P 500 up 0.7%, Nasdaq up 1%

NEW YORK, Jan 10 (Reuters) – U.S. stocks edged up 1% on the Nasdaq on Tuesday as Federal Reserve Chairman Jerome Powell refrained from commenting on interest rate policy.

In his first public appearance of the year, Powell said At the forum sponsored by the central bank of Sweden, he said that the independence of the Fed is important for fighting inflation.

Recent comments from other Fed officials supported the view that the central bank should remain aggressive in raising interest rates to control inflation. Fed Governor Michelle Bowman said on Tuesday that the bank will need to raise interest rates further to combat high inflation.

“Everybody is hanging on the Fed’s every word,” said Tim Ghriskey, chief portfolio strategist at Ingalls & Snyder in New York. Powell said he “didn’t really say anything” about the policy.

Investors were looking forward to Thursday’s US consumer price index report, which is expected to show some moderation in annual prices in December.

Traders are betting on a 25 basis point rate hike at the Fed’s February policy meeting.

“There are some signs that inflation is slowing significantly. What investors are really looking for is a gap in core inflation data that might get the Fed’s attention,” Ghriskey said. Inc. (AMZN.O) shares rose 2.9%, giving the Nasdaq and S&P 500 the biggest boost.

Dow Jones Industrial Average (.DJI) 186.45 dams, gold 0.56%, 33 704.1 tons; S&P 500 (.SPX) increased by 27.16 points or 0.70% to 3,919.25; and the Nasdaq Composite (.IXIC) It added 106.98 points or 1.01% to 10,742.63 points.

Traders work on the trading floor of the New York Stock Exchange (NYSE), New York, USA, January 5, 2023. REUTERS/Andrew Kelly

Microsoft Corp shares (MSFT.O) It rose 0.8% a day after the semaphore, citing people familiar with the matter. informed said the tech company is in talks to invest $10 billion in ChatGPT owner OpenAI.

Communication services (.SPLRCL) and the best performing sector of the day was energy (.SPNY) increased along with oil prices.

This week marks the start of fourth-quarter earnings season for S&P 500 companies, with results from several of Wall Street’s biggest banks due later this week.

Shares of investment bank Jefferies Financial Group (JEF.N) On Tuesday, it rose 3.8% a day later placed second best year for investment banking revenue. It also reported a 52.5% drop in fourth-quarter profit.

According to IBES data from Refinitiv, analysts expect gross profit on the S&P 500 to fall 2.2% in the fourth quarter from a year earlier, as concerns about interest rate hikes and the growing economy grew.

Some investors are hoping for signs that the Fed may take a break soon after raising the federal funds rate seven times in 2022.

World Bank on Tuesday cut off Growth forecasts for 2023 on Tuesday will reach recessionary levels for many countries as the impact of central bank interest rate hikes strengthens.

The stock traded 10.02 billion shares over the past 20 trading days, compared to an average of 10.91 billion shares for the full session.

Advancers outnumbered decliners on the NYSE by a ratio of 2.33 to 1; A 2.45-to-1 ratio on the Nasdaq favored the advancers.

The S&P 500 posted four new 52-week highs and no new lows; The Nasdaq Composite recorded 71 new highs and 30 new lows.

Additional reporting by Ankika Biswas, Amruta Khandekar and Johann M Cherian in Bengaluru; Edited by Shinjini Ganguli, Shounak Dasgupta and Richard Chang

Our standards: Thomson Reuters Trust Principles.

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