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Growth stocks will bounce back from a fall in Treasury yields
Indices: Dow up 0.29%, S&P 500 up 0.53%, Nasdaq up 0.93%
Futures: S&P up 0.5%, Dow 500 up 0.3%, Nasdaq up 0.8%
(Adds Fed Minutes, updates prices constantly)
Authors: Carolina Mandl and Sinead Carew
November 23 (Reuters) – Wall Street’s main indices edged higher on Wednesday after minutes of the Federal Reserve’s November meeting showed interest rate hikes may be slowing soon.
A “substantial majority” of policymakers agreed that slowing the pace of interest rate hikes would be “probably appropriate soon”.
Since the Fed’s last meeting on November 1-2, investors are more optimistic that pressure on prices has eased, suggesting that a slower rate hike could contain inflation.
“Equities markets have had to see the recent strength continue, that’s what we got from the minutes,” said Michael James, managing director of equities trading at Wedbush Securities in Los Angeles.
At 2:19 p.m. ET, the Dow Jones Industrial Average was up 100.48 points, or 0.29%, to 34,198.58; The S&P 500 rose 21.14 points, or 0.53%, to 4,024.72; and the Nasdaq Composite rose 103.99 points, or 0.93%, to 11,278.39.
Trading volume was light ahead of the Thanksgiving holiday on Thursday, with the US stock market opening for half a session on Friday.
Earlier in the morning, a mix of economic data caused the benchmark 10-year Treasury note yield to fall, helping to lift shares.
The number of Americans filing new jobless claims rose more-than-expected last week, and US business activity fell for a fifth straight month in November. Consumer sentiment improved and home sales rose above expectations.
Upgrading issues predominated on the NYSE at a 1.77:1 ratio; on the Nasdaq, a 1.69-to-1 ratio favored the movers.
S&P 500 records 21 new 52-week highs and no new lows; The Nasdaq Composite posted 81 new highs and 112 new lows. (Reporting by Carolina Mandl, Shreyashi Sanyal, and Ankika Biswas; Editing by Shounak Dasgupta, Arun Koyyur, Anil D’Silva, and Richard Chang)